SHORT TERM: market rebounds, DOW +191
Overnight the Asian market lost 0.7%. Europe opened lower but gained 1.2%. US index futures were lower overnight. At 8:30 the CPI was reported lower: -0.4% v -0.3%, and at 9:15 Industrial production was reported lower: -0.1% v +1.3%. The market opened one point above yesterday’s SPX 1991 close, rallied to 2001, then declined to 1988 just past 10am. At 10am Consumer sentiment was reported at a 12 year high: 98.2 v 93.6. The market then rallied to SPX 1212 just before 1pm, pulled back 2004 by 1:30, then hit 2020 just before a 2019 close.
For the day the SPX/DOW were +1.20%, and the NDX/NAZ were +1.35%. Bonds lost 20 ticks, Crude gained $2.30, Gold rallied $16, and the USD was higher. Medium term support remains at the 1973 and 1956 pivots, with resistance at the 2019 and 2070 pivots. Last night the FED reported a decrease in the Monetary base: $3.941tn v $3.994tn. Today the WLEI was reported lower: 45% v 45.6%.
The market opened slightly higher today, rallied just above SPX 2000, then dropped down to hit 1988 again. After that the market moved higher into the close hitting the 2019 pivot. While the rally was over 30 points it did not subdivide suggesting it could be just another counter rally. However, the market did make a double bottom at SPX 1988 keeping the Minute wave ii flat pattern intact. More on this over the weekend. Short term support is at SPX 1988 and the 1973 pivot, with resistance at the 2019 pivot and SPX 2057. Short term momentum hit overbought, and ended the week there. Best to your weekend!
MEDIUM TERM: uptrend still in jeopardy
LONG TERM: bull market