SHORT TERM: drift higher continues, DOW unchanged
Overnight the Asian markets were mixed. Europe opened lower but gained 0.2%. US index futures were lower overnight, and at 8:30 weekly Jobless claims were reported higher: 274k v 264k. The market opened three points below yesterday’s SPX 2126 close, then began to rally. At 10am Existing home sales were reported lower: 5.04mn v 5.19mn, the Philly FED was reported lower: 6.7 v 7.5, but Leading indicators were reported higher: +0.7% v +0.2%. At 12:30 the SPX hit 2133, then pulled back to 2129 by 2pm. At 2pm FED vice chair Fischer’s speech was released: http://www.federalreserve.gov/newsevents/speech/fischer20150521.htm. The market then remained in that range until the last hour of trading when it hit SPX 2134. Then a pullback into the close ended the day at SPX 2131.
For the day the SPX/DOW were +0.15%, and the NDX/NAZ were +0.45%. Bonds gained 14 ticks, Crude rallied $1.65, Gold dropped $4, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: the CPI at 8:30, and a speech from FED chair Yellen at 1pm.
The market opened at yesterday’s low today, SPX 2123, but that again was the low for the day. After the opening the market rallied to SPX 2133, pulled back, then hit 2134 in the last hour of trading. Today’s pullback, from yesterday’s SPX 2135, found support at 2123. This is the fourth wave of the advance from 2086: 2110-2096-2133-2123-2135. With the market closing close to the SPX 2135 all time high, there is a possibility for the first impulse wave unfolding since February: 2118-2086-2135-2123-xxxx. Inflection point continues. Short term support now at SPX 2118/2123 and SPX 2110, with resistance at the 2131 and 2198 pivots. Short term momentum remained around neutral most of the day. Best to your pre-holiday trading!
MEDIUM TERM: still an uptrend
LONG TERM: bull market