SHORT TERM: gap up and go opening, DOW +260
Overnight the Asian markets gained 0.9%. Europe opened lower but gained 0.1%. US index futures were higher overnight. At 8:30 weekly Jobless claims were reported lower: 289k v 320k, Retail sales were reported lower: -0.6% v -0.8%, and Export (+0.2% v -1.0%)/Import (-0.3% v -0.7%) prices were reported mixed. The market gapped up at the open to SPX 2048 and continued to rally. At 10am Business inventories were reported flat: +0.0% v +0.1%. The rally continued until 11:30 when the SPX hit 2062. Then after a pullback to 2057 by 12:30, the market moved even higher. Heading into the close the market hit SPX 2066 and closed there.
For the day the SPX/DOW were +1.35%, and the NDX/NAZ were +0.80%. Bonds gained 5 ticks, Crude dropped $1.15, Gold slipped $1, and the USD was lower. Medium term support remains at the 2019 and 1973 pivots, with resistance at the 2070 and 2085 pivots. Tomorrow: the PPI at 8:30, then Consumer sentiment at 10am.
The market gapped up today for the first time since February 12th. The rally cleared short term resistance at SPX 2051 in the opening minutes, hit 2062, pulled back a bit, then headed toward the 2070 pivot range. During the entire SPX 2120 to 2040 decline the market’s biggest rallies were each 16 points. This occurred twice. Today’s 26 point rally far exceeded both. With the market rallying into the OEW 2070 pivot range it appears the Minor wave 2 pullback may be over. We posted a tentative green 2 label at yesterday’s low. Next we would like to see a pullback, then a rally to a higher high to be more convinced the pullback has ended. At yesterday’s low Minute C equaled exactly twice Minute A. Short term support is at SPX 2051 and SPX 2040, with resistance at the 2070 and 2085 pivots. Short term momentum ended the day slightly overbought. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market