SHORT TERM: quiet options expiration, DOW +20
Overnight the Asian markets gained 1.1%. Europe opened higher but lost 0.7%. US index futures were higher overnight. At 8:30 the NY FED was reported higher: +3.1 v -1.2, then at 9:15 Industrial production was reported lower: -0.3% v -0.6%. The market opened three points above yesterday’s close, made the high for the day, and then started to pullback. By 10am the SPX had hit 2117, then it stayed in a narrow range for the rest of the day closing at 2123.
For the day the SPX/DOW were +0.10%, and the NDX/NAZ were -0.05%. Bonds gained 20 ticks, Crude slipped 15 cents, Gold added $3, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Last night the FED reported the monetary base lower: $4.010tn v $4.027tn. Today the WLEI was reported higher: 51.2% v 50.5%. The economy is growing again.
The market opened higher again today for the third day in a row. At the open the SPX hit 2124, its highest level since late April, pulled back, then went into a trading range for the rest of the day. As expected, the volatility often associated with options expiration occurred yesterday. With today’s high the market entered the OEW 2131 pivot range again, and was turned away just like last time. Wave pattern and analysis remains unchanged. Best to your weekend!
MEDIUM TERM: still an uptrend
LONG TERM: bull market