SHORT TERM: gap up opening rebound, DOW +213
Overnight the Asian markets gained 0.2%. Europe opened higher and gained 0.7%. US index futures were higher overnight. At 8:15 the ADP index was reported higher: 241k v 208k, then at 8:30 the Trade deficit was reported lower: -$39.0bn v -$43.4bn. The market gapped up at the open to SPX 2015, and rallied to 2025 by 10am. Then it pulled back in a flat formation (2013-2021-2012) by 11:30. After that a rally to SPX 2030 around noon, then it pulled back to 2020 ahead of the FOMC minutes: http://www.federalreserve.gov/newsevents/press/monetary/20150107a.htm. After the report the market rallied to SPX 2028, dipped to 2021 by 3pm, then bounced to close at 2026.
For the day the SPX/DOW were +1.20%, and the NDX/NAZ were +1.20%. Bonds gained 4 ticks, Crude added 65 cents, Gold slipped $6, and the USD was higher. Medium term support rises to the 2019 and 1973 pivots, with resistance at the 2070 and 2085 pivots. Tomorrow: weekly Jobless claims at 8:30, then Consumer credit at 3pm.
The market gapped up at the open today, resuming yesterday’s late afternoon rally. The SPX hit 2025 at 10am, pulled back, then hit 2030 around noon. This represents a 38 point rally off yesterday’s SPX 1992 low. Thus far this advance looks a bit choppy on the “very” short term charts: 2017-2002-2025-2012-2030. Since the short term charts look okay, this advance could be a series of 1-2’s or part/all of a B wave rally. In either case it does not look like the initial rally coming off the last two important lows. Short term support is at the 2019 pivot and SPX 1992, with resistance at SPX 2030 and the 2070 pivot. Short term momentum rose above neutral after yesterday’s positive divergence. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market