SHORT TERM: gap up opening again, DOW +323
Overnight the Asian markets gained 1.3%. Europe opened higher and soared 3.1%. US index futures were much higher overnight, and at 8:30 weekly Jobless claims were reported lower: 294k v 298k. The market gapped up to SPX 2041 at the open and continued to rally. The SPX had closed at 2026 yesterday. Around 11am the SPX hit 2061, its highest level this week. After a pullback to SPX 2055 by 12:30, a bounce to 2062 by 1:30, and a pullback to 2057 by 2pm, the market moved higher. At 2:30 the SPX hit 2064, pulled back to 2059 by 3:30, then bounced to close at 2062.
For the day the SPX/DOW were +1.80%, and the NDX/NAZ were +1.90%. Bonds lost 11 ticks, Crude rose 30 cents, Gold slipped $4, and the USD was higher yet again. Medium term support remains at the 2019 and 1973 pivots, with resistance at the 2070 and 2085 pivots. Today long term investor sentiment was reported higher: 58.5% v 57.2%. Tomorrow: Payrolls at 8:30 (est. +243k), then Wholesale inventories at 10am.
The market gapped up at the open for the second day in a row. Unlike yesterday, however, it was not immediately sold after the first half hour of trading. Today the market rallied until 11am before some pullback activity occurred. Also, while yesterday’s action created several very short term waves: 2025-2012-2030-2020. Today displayed only a higher continuation off yesterday’s SPX 2020 low to 2064. With the market gapping over yesterday’s SPX 2030 high at the open, we updated the hourly/daily charts to display a Minute wave two at Tuesday’s 1992 low. It certainly looks like the market is now in Minute wave three. However, the market should not drop below SPX 2030, on any pullback, unless this entire rally is some sort of B wave. Short term support is now at SPX 2030 and the 2019 pivot, with resistance at the 2070 and 2085 pivots. Short term momentum hit extremely overbought today, and ended there. Best to your Payrolls trading tomorrow.
MEDIUM TERM: uptrend
LONG TERM: bull market