SHORT TERM: options expiration Friday, DOW +155
Overnight the Asian markets lost 0.1%. Europe opened lower but gained 0.2%. US index futures were lower overnight and the market opened three points below yesterday’s SPX 2097 close. The pullback continued until 10am when the SPX hit the 2085 pivot. Then the market started to work its way higher. Heading into the afternoon the market responded positively to a potential four month debt extension between the EU and Greece. Just past 3pm the SPX hit 2111, a new high, then closed at 2110.
For the day the SPX/DOW were +0.75%, and the NDX/NAZ were +0.65%. Bonds lost 3 ticks, Crude slid $1.05, Gold dropped $6, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Last night the FED reported a decline in the Monetary base: $3.883tn v $4.036tn. Today the WLEI was reported unchanged at 45.7%.
The market opened lower today for the fourth consecutive day this week. And for the fourth time made its low for the day within the first hour of trading. At the low, lowest level this week, the SPX hit 2085 and then rallied, with only three point pullbacks along the way, to make new highs. Even the DOW made an all time new high today. Will we cover what this implies and other tidbits in the weekend update. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market