SHORT TERM: gap up and go Monday, DOW +209
Overnight the Asian markets lost 1.3%. Europe opened higher and gained 0.8%. US index futures were higher overnight, and the market gapped up to SPX 2094 at the open. The SPX had closed at 2081 on Friday. The rally continued until 11am when the SPX hit 2104. Then the market started to pullback. By 2pm the market had pulled back to 2099. Then after a bounce to SPX 2103 by 3:30 the market closed at 2100.
For the day the SPX/DOW were +1.05%, and the NDX/NAZ were +1.40%. Bonds lost 9 ticks, Crude gained 40 cents, Gold dropped $9, and the USD was higher. Medium term support rises back to the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: nothing scheduled on the economic agenda.
The market gapped up at the open today, reversing Friday’s selloff, and nearly rallied back to Thursday’s SPX 2105 close. While we were not surprised by the rally, it’s a choppy market, we were surprised that the SPX cleared 2100 and the DOW cleared 18000 again. Also of note, the last two gap up openings Mar 30th and Apr 15th, made a last hour high, and then dropped 40 points over the next two days. This gap up opening failed to reach the early SPX 2104 high by one point in the last hour of trading. This is fairly close to the previous pullback setups. Short term support is at the 2085 and 2070 pivots, with resistance at SPX 2112/2115 and SPX 2120. Short term momentum hit overbought during the rally, then backed off some into the close. Best to your Tuesday trading!
MEDIUM TERM: still an uptrend
LONG TERM: bull market