SHORT TERM: market drifts higher, DOW +56
Overnight the Asian markets gained 1.4%. Europe opened higher and gained 1.2%. US index futures were lower overnight, but the market opened one point above yesterday’s SPX 2082 close. In the opening minutes the market rose to SPX 2088, then began to pullback. At 10am Wholesale inventories were reported higher: +0.3% v +0.3%. By 11:30 the SPX had reached 2073, and then started to rally. The rally continued into the afternoon and the SPX hit 2093 around 3:30, then pulled back to close at 2091.
For the day the SPX/DOW were +0.40%, and the NDX/NAZ were +0.55%. Bonds lost 15 ticks, Crude gained 25 cents, Gold slid $8, and the USD rallied. Medium term support rises to the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: Export/Import prices at 10am, then the Budget deficit at 2pm.
The market opened slightly higher, pulled back to SPX 2074, then rallied to 2093 in the last hour of trading. While the market did manage to make a new high from last week’s SPX 2048 low, the rally looks anything but impulsive. In fact we have observed 15 small waves while the market has risen only 45 points. Quite unusual to see this kind of choppy action during a rally. With Asian and European markets continuing to rise, some having big rises too, the US market drifts higher despite a big rally in the USD this week. An interesting situation short term. Short term support is at the 2085 and 2070 pivots, with resistance at the SPX 2115 and SPX 2120. Short term momentum hit overbought again during this afternoon’s rally. Best to your trading!
MEDIUM TERM: still an uptrend
LONG TERM: bull market