SHORT TERM: wacky Wednesday reversal, DOW +121
Overnight the Asian markets lost 0.2%. Europe opened higher and gained 1.5%. US index futures were higher overnight, and the market opened three points above yesterday’s SPX 2104 close. Then the market started to rally. By 10am the SPX had hit 2118. It dipped to SPX 2113 by 10:30, and then started to move higher. Nearing the close the SPX hit 2126, then pulled back to close at 2123.
For the day the SPX/DOW were +0.80%, and the NDX/NAZ were +1.55%. Bonds finished flat, Crude slipped 40 cents, Gold was unchanged, and the USD was lower. 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, then Pending home sales at 10am.
The market opened higher today, rallied into the SPX 2118 resistance area, pulled back, then rallied back into the OEW 2131 pivot range. In fact, the market closed yesterday’s opening gap down from SPX 2126. After three small waves down from SPX 2135 into yesterday’s 2099 low, the market has rallied back into last week’s SPX 2120-2135 trading range as well. A resilient market to say the least. Up, down, more sideways action – tomorrow’s another day. Short term support is back to SPX 2118 and SPX 2109/2010, with resistance at the 2131 and 2198 pivots. Short term momentum hit quite overbought today, reversing yesterday’s extreme oversold level. Best to your trading this market!
MEDIUM TERM: still an uptrend
LONG TERM: bull market