SHORT TERM: gap up and go Thursday, DOW +110
Overnight the Asian markets gained 1.1%. Europe opened higher and gained 0.9%. US index futures were higher overnight on a peace treaty in the Ukraine. At 8:30 weekly Jobless claims were reported higher: 304k v 274k, and Retail sales were lower: -0.8% v -0.9%. The market gapped up at the open to SPX 2077 and continued to rally. The market had closed at SPX 2069 yesterday. At 10am Business inventories were reported higher: +0.1% v +0.2%. Just past 10am the SPX hit 2083, pulled back to 2078 by 11:30, then started to move higher. Heading into the close the SPX hit 2089, then dipped to end at 2088.
For the day the SPX/DOW were +0.80 and the NDX/NAZ were +1.20%. Bonds gained 1 tick, Crude gained $2.35, Gold added $3, and the USD was lower. Medium term support rises to the 2085 and 2070 pivots, with resistance now at the 2131 and 2198 pivots. Tomorrow: Export/Import prices at 8:30, then Consumer sentiment at 10am.
The market gapped up at the open for the second time this week. The gap opening took the market over the OEW 2070 pivot range in the opening minutes for the first time since late-December. This uptrend, after getting a bit sloppy around the mid-2000’s, is again impulsing nicely. We noted yesterday the five waves up from Monday’s SPX 2042. While we await an all time new high, we are going to tentatively label the SPX 2072 high as Minor 1 and the SPX 2042 low as Minor 2. Minor wave 3 should be currently underway from the low. SPX 2042 continues to remain the go or no go level for this uptrend. Short term support is at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Short term momentum ended the day extremely overbought. Best to your Friday trading!
MEDIUM TERM: uptrend
LONG TERM: bull market