SHORT TERM: no gap opening – streak broken, DOW +27
Overnight the Asian markets gained 1.5%. Europe opened higher and gained 0.3%. US index futures were higher overnight, and the market opened three points above yesterday’s SPX 2061 close. The market continued to rally until it hit SPX 2071 just past 10am. Then a pullback to SPX 2062 followed by 12:30, before the market tried to rally again. Heading into the last hour the SPX hit 2078, then pulled to end the week at 2071.
For the day the SPX/DOW were +0.30%, and the NDX/NAZ were +0.35%. Bonds gained 6 ticks, Crude rallied $3.60, Gold slipped $3, and the USD was higher. Medium term support rises to the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Today the WLEI was reported lower: 46.9% v 47.7%.
The market opened higher today, broke the 9 day gap opening streak, and rallied to SPX 2078. The market has now rallied 5.0% in just three days. Thus far, we see a small five wave sequence off the SPX 1973 low, a decent pullback, and now a larger five wave sequence off that SPX 1992 low. This advance certainly looks impulsive. As soon as we get an uptrend confirmation we will drop the Major wave 4 scenario in favor of the Minor wave 3 of Intermediate v scenario. This alone has future implications which will be covered in the weekend update. Short term support is at the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Short term momentum remains overbought. Happy Holidays!
MEDIUM TERM: uptrend probably underway
LONG TERM: bull market