SHORT TERM: gap up and go opening, DOW +236
Overnight the Asian markets finished mixed. Europe opened lower but gained 1.8%. US index futures were higher overnight. The market gapped up to SPX 2089 at the open and continued to rally. The SPX had closed at 2080 yesterday. Just past 11am the SPX hit 2108. Then after a pullback to SPX 2104 by 1:30 the market moved higher again. At 2:30 the SPX hit 2109, then pulled back to close at 2105.
For the day the SPX/DOW were +1.25%, and the NDX/NAZ were +1.25%. Bonds lost 16 ticks, Crude gained $1.05, Gold rose $10, and the USD was lower. Medium term support rises back to the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: weekly Jobless claims, Retail sales and Export/Import prices all at 8:30, then Business inventories at 10am.
The market gapped up to start the day for the first time since last Wednesday. After the opening we changed the Minute wave a labeling to the proper color. While the rally looked fairly strong today, it does not look much different from the previous Minute wave b rally. Minute b of Minor A retraced exactly 75% of the Minute a decline. This Minute b will have retraced about 75% of its Minute a decline at around SPX 2110. The market hit SPX 2109 today. When this rally does conclude the downtrend should resume. Should the market rally back to SPX 2122, clearly the short term count needs correcting. Until then short term support is at SPX 2099 and the 2085 pivot, with resistance at SPX 2118 and the 2131 pivot. Short term momentum hit extremely overbought today. Best to your trading!
MEDIUM TERM: downtrend
LONG TERM: bull market