SHORT TERM: gap up opening again, DOW +88
Overnight the Asian markets gained 0.7%. Europe opened higher but lost 0.2%. US index futures were higher overnight, and at 9am the FHFA was reported higher: +5.4% v +5.1%. The market gapped up at the open for the third day in a row, hit SPX 2102, and then immediately to pullback. At 10am Existing home sales were reported higher: 5.19mn v 4.89mn. The SPX hit 2091 just past 10am and then started to rally. Nearing 3:30 the SPX hit 2110, then backed off the 2106 before closing at 2108.
For the day the SPX/DOW were +0.50%, and the NDX/NAZ were +0.50%. Bonds lost 19 ticks, Crude slipped 30 cents, Gold dropped $15, and the USD was lower too. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: weekly Jobless claims at 8:30, Congressional testimony from FED director Hunter at 9:15, then New home sales at 10am.
The market gapped up at the open today, and just like yesterday the opening was immediately sold. While yesterday’s pullback did not get back to opening levels, today’s turned right around and hit yesterday’s opening high at SPX 2110. After weeks of choppy patterns we took at look at other potential counts after yesterday’s close. Today we posted one on the hourly chart, suggesting SPX 2040 ended an A wave, and a triangular B wave has been underway for the past few weeks. Should this be correct, the B wave should be topping quite soon and a C wave down into the SPX 2040’s should follow. There are other counts. But this looked the most obvious at the moment. We also ended the day with the SPX over 2100, the DOW over 18000, and the NAZ over 5000. The previous times this has occurred the market sold off. Short term support is at the 2085 and 2070 pivots, with resistance at SPX 2112/2115 and SPX 2120. Short term momentum hit quite overbought today during the rally. Best to your trading!
MEDIUM TERM: still an uptrend
LONG TERM: bull market