SHORT TERM: gap down opening, then rebound DOW +39
Overnight the Asian markets gained 0.5%. Europe opened lower but gained 1.0%. US index futures were lower overnight. At 8:30 Building permits were reported lower: 1032k v 1035k, and Housing starts were reported higher: 1089k v 1028k. The market gapped down at the open to SPX 2014, hit 2012 in the first few minutes, then started to rebound. The SPX had closed at 2023 yesterday. Still within the first half hour the market spiked to SPX 2029, declined to 2019, and then started to rally. Around 11am the SPX 2038, and then went into pullback mode again. At 2pm the SPX hit 2023, rallied to 2034 by 3:30, and then closed at 2032.
For the day the SPX/DOW were +0.35%, and the NDX/NAZ were +0.40%. Bonds lost 14 ticks, Crude gained $1.05, Gold ended flat, and the USD was lower. Medium term support remains at the 2019 and 1973 pivots, with resistance at the 2070 and 2085 pivots. Tomorrow: the ECB reports, weekly Jobless claims at 8:30, and FHFA prices at 9am.
The market gapped down at the open today, hit SPX 2012, and then started to rally as some potential details of the ECB’s QE program were disclosed. The action after the low was quite choppy SPX: 2029-2019-2038-2023-2034. Nevertheless the SPX cleared yesterday’s 2029 high and we posted a Minute wave ii label at the recent 1988 low. As long as SPX 2004 holds we believe this is the right count. Short term support is at SPX 2004 and SPX 1988, with resistance at SPX 2038 and SPX 2057. Short term momentum declined from overbought to about neutral. Best to your ECB trading tomorrow!
MEDIUM TERM: uptrend trying to resume
LONG TERM: bull market