SHORT TERM: new highs, DOW +28
Over the extended weekend the Asian markets gained 0.3%, and Europe lost 0.2%. US index futures were lower overnight, and at 8:30 the NY FED was reported lower: 7.8 v 9.9. The market opened two points below Friday’s SPX 2097 close, then declined to 2090 in the first 15 minutes. After that it started to work its way higher. At 10am the NAHB index was reported lower: 55 v 57. The market made new highs at SPX 2101 by 1:30. Then it pulled back to SPX 2096, just before a 2100 close.
For the day the SPX/DOW Were +0.15%, and the NDX/NAZ were +0.05%. Bonds lost 29 ticks, Crude gained 30 cents, Gold dropped $20, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: Housing starts, Building permits and the PPI at 8:30; Industrial production (est. +0.2%) at 9:15; the FOMC minutes at 2pm; then a speech from FED governor Powell at 5pm.
The market opened slightly lower today, dipped to SPX 2090, then rallied to a new high at 2101. We continue to count five waves up from the recent SPX 2042 low. The market continues to act like it is in the third wave up for this uptrend from SPX 1981: 2072-2042-2101 thus far. There is still a short term negative divergence building, so this market could experience a, larger than 7 point, pullback at any time. Lots of economic news tomorrow, including the sometimes volatile FOMC minutes. Short term support is at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market