SHORT TERM: gap up and go Friday, DOW +267
Overnight the Asian markets gained 1.1%. Europe opened higher and gained 2.5%. US index futures were higher overnight as well. At 8:30 monthly Payrolls were reported higher: 213k v 129k, and Unemployment rate dropped to 5.4% v 5.5%. The market gapped up at the open to SPX 2106 and continued to rally. At 10am Wholesale inventories were reported higher: +0.1% v +0.3%. Just before noon the SPX hit 2118, and then started to pullback. The pullback was small as the SPX hit 2112 by 2:30, then bounced to close at 2116.
For the day the SPX/DOW were +1.40%, and the NDX/NAZ were +1.25%. Bonds gained 16 ticks, Crude added 55 cents, Gold rose $6, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. This week the MMIS was reported lower: 57.9% v 58.6%, and today the WLEI was reported higher: 50.5% v 49.9%.
Index futures were higher overnight, but really took off to the upside after the Payrolls report. The market gapped up 18 points at the open, then added another 12 points on top of that by noon. If this market was not so choppy the past two months this rally might even look bullish. The SPX has now rallied 50 points in just two days. Quite a reversal when considering it was just about to confirm a downtrend. Lots to consider in the weekend review. Best to your weekend!
MEDIUM TERM: bungee uptrend continues
LONG TERM: bull market