SHORT TERM: gap up opening, DOW +65
Overnight the Asian markets gained 0.2%. Europe opened higher and gained 0.6%. US index futures were higher overnight. At 8:30 Q3 GDP was reported: +5.0% v +3.9%, but Durable goods were reported lower: -0.7% v +0.4%. At 9am the FHFA housing index was reported higher: +0.6% v 0.0%. The market gapped up at the open to SPX 2085, moved up to 2086 by 10am, then started to pullback. At 10am Consumer sentiment was reported lower: 93.6 v 93.8, PCE prices were reported flat: 0.0% v +0.2%, New home sales were reported lower: 438k v 458k, and Personal income (+0.4% v +0.2%)/spending (+0.6% v +0.2%) were reported higher. The pullback ended around 10:30 when the SPX hit 2080, and then the market started to drift higher. Just before 3pm the SPX hit 2087, then pulled back to close at 2082.
For the day the SPX/DOW were +0.25%, and the NDX/NAZ were -0.30%. Bonds lost 23 ticks, Crude rallied $1.85, Gold added $2, and the USD was higher. Medium term support remains at the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Tomorrow: weekly Jobless claims at 8:30, and the market closes at 1pm.
The market gapped up at the open today after Q3 GDP was reported +5.0%. The SPX hit 2086 in the first half hour of trading, pulled back to 2080, then hit a new high at 2087. From last week’s SPX 1992 low it now looks like we have seven waves up into today’s high. This suggests a possible small pullback, and then higher highs. What would negate this scenario is a drop below SPX 2078. With tomorrow being half a day, and most traders already gone for the holiday, we doubt the weekly jobless claims report is going to move the markets. Expecting a quiet day. Happy holidays!
MEDIUM TERM: uptrend
LONG TERM: bull market