SHORT TERM: gap up opening, DOW +212
Overnight the Asian markets lost 0.2%. Europe opened lower and finished mixed. US index futures were higher overnight. At 8:30 weekly Jobless claims were reported higher: 278k v 265k, and the Trade deficit wider: -$46.6bn v -$39.0bn. The market gapped up at the open to SPX 2049 and continued to rally. The SPX had closed at 2042 yesterday. At 11am the SPX hit a new high for the rally at 2060. Then after a pullback to SPX 2054 by 1pm the market went into a trading range and then moved higher again. Nearing the close the SPX hit 2064, then dipped to close at 2063.
For the day the SPX/DOW were +1.10%, and the NDX/NAZ were +0.90%. Bonds lost 3 tick, Crude rose $2.45, Gold added $1, and the USD was lower. Medium term support remains at the 2019 and 1973 pivots, with resistance at the 2070 and 2085 pivots. Tomorrow: monthly Payrolls (est. +235K) at 8:30, and Consumer credit at 3pm.
After yesterday’s last hour selloff, on ECB/Greece news, futures continued lower overnight. But turned around when Europe shrugged it off and rebounded after a gap down opening. The US market gapped up, as a result, then rallied beyond yesterday’s pre-selloff high. Then after some sideways activity from 11am to 3pm the market moved higher again. This rally, from Monday’s SPX 1981 low, continues to look impulsive. Short term support is now at SPX 2037 and SPX 2028, with resistance at the 2070 and 2085 pivots. Yesterday’s negative divergence took short term momentum down to neutral, but it reversed to overbought again today. Best to your Payrolls trading tomorrow.
MEDIUM TERM: uptrend probable
LONG TERM: bull market