SHORT TERM: Monday rebound, DOW +156
Overnight the Asian markets gained 0.4%. Europe opened higher but lost 0.3%. US index futures were mixed overnight. At 8:30 Personal income was report higher: +0.3% v +0.3%, Personal spending lower: -0.2% v -0.3%, and PCE prices higher: +0.1% v +0.0%. The market opened one point above Friday’s SPX 2105 close, dipped to 2105, then started to rally. At 10am ISM manufacturing was reported lower: 52.8 v 53.5, and Construction spending was reported lower: -1.1% v +0.4%. The rally continued until 11:30 when the SPX hit 2114. Then after a pullback to SPX 2109 by 12:30 the market rallied to 2118 just before a 2117 close.
For the day the SPX/DOW rose 0.75%, and the NDX/NAZ rose 0.90%. Bonds lost 22 ticks, Crude added 10 cents, Gold slipped $4, and the USD was higher. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: Auto sales, then a speech from FED chair Yellen at 8:15pm.
The market opened higher today, dipped to unchanged, then rallied, except for one small pullback, for the rest of the day. Just before the close the SPX came within two points of its 2120 all time high, as the NAZ closed over 5000 for the first time in 15 years. The count posted over the weekend continues to look good. Today’s rally suggests Minute v, of Minor 3, is underway. All we need now is a SPX 2120 print to confirm. After that we would expect this rally to top between SPX 2120 and 2139, as noted in the weekend update. Then we should see a Minor 4 pullback before Minor 5 kicks in for new all time highs. Short term support is at SPX 2104 and the 2080 pivot, with resistance at SPX 2120 and the 2131 pivot. Short term momentum ended the day slightly overbought. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market