SHORT TERM: consolidation day, DOW +24
Overnight the Asian markets gained 1.0%. Europe opened higher and gained 0.7%. US index futures were also higher overnight. At 8:30 Durable goods were reported lower: -1.8% v -1.0%, then at 9am FHFA housing prices were reported higher: +0.3% v +0.3%. The market opened 4 points above yesterday’s SPX 2123 close, then drifted sideways. At 10am the SPX hit 2128 and started to pullback. Also at 10am New home sales were reported higher: 546k 517k. The pullback continued until noon when the SPX hit 2120. Then a rally to SPX 2125 followed by 2:30, before a 2124 close.
For the day the SPX/DOW were +0.10%, and the NDX/NAZ were +0.10%. Bonds lost 13 ticks, Crude gained 70 cents, Gold slid $7, and the USD was higher. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: Q1 GDP (est. -0.2%).
The market opened higher today, rose to 2 points below yesterday’s SPX 2130 high, then pulled back to 1 point below yesterday’s SPX 2121 low. A consolidation day. After the small five waves up from SPX 2072: 2104-2089-2127-2109-2130, the market has been in a pullback mode with 2120 the low thus far. This is the first five wave rally, of any kind, since the early February downtrend low at SPX 1981. Short term support is at SPX 2109 and the 2085 pivot, with resistance at the 2131 and 2198 pivots. Short term momentum spent most of the day vacillating around neutral. Best to your GDP trading tomorrow!
MEDIUM TERM: uptrend likely underway
LONG TERM: bull market