SHORT TERM: higher open – new highs, DOW +47
Overnight the Asian markets gained 0.6%. Europe opened higher and gained 0.6% as well. US index futures were higher overnight. At 8:30 Export (-1.0% v -1.2%)/Import prices (-0.7% v -0.1%) were both reported lower. The market opened two points above yesterday’s SPX 2088 close and continued higher. At 10am Consumer sentiment was reported lower: 93.6 v 98.5. At 11am the SPX hit an all time high at 2095, and then started to pullback. The pullback ended around 1:30 at SPX 2087. Then the market rallied to a new high at SPX 2097 and closed there.
For the day the SPX/DOW were +0.35%, and the NDX/NAZ were +0.80%. Bonds lost 11 ticks, Crude gained $1.30, Gold added $6, and the USD was higher. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Today the WLEI was reported lower: 45.7% v 46.0%.
The market opened higher today, rallied to new highs, pulled back, then rallied again. With the market making new highs today we have discarded the low probability Major 4 triangle scenario. It now looks like Major wave 4 did indeed end a week ago Monday at SPX 1981. The current rally from this Monday’s SPX 1942 low continues to display five waves up: 2058-2049-2071-2058-2097. More on this and a review of the ongoing Primary III wave this weekend. Keep in mind the US market is closed Monday. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market