SHORT TERM: gap up opening faded, DOW +33
Overnight the Asian markets gained 1.3%. Europe opened higher and gained 2.1%. US index futures were sharply higher overnight, and at 8:30 weekly Jobless claims were reported higher: 297k v 281k. The market gapped up at the open to SPX 2069, hit 2074 in the first few minutes, then started to pullback. The SPX had closed at 2047 yesterday. At 10am FED governor Brainard’s speech was released: http://www.federalreserve.gov/newsevents/speech/brainard20150709a.htm. The market continued to pullback until 10:30 when the SPX hit 2063. Then after a rally to SPX 2069 just after 11am, the market headed even lower. At 2:30 the SPX hit 2051, bounced to 2059 just past 3pm, then closed at 2051.
For the day the SPX/DOW gained 0.20%, and the NDX/NAZ gained 0.15%. Bonds lost 25 ticks, Crude rose $1.10, Gold added $2, and the USD was higher. Medium term support remains at the 2019 and 1973 pivots, with resistance at the 2070 and 2085 pivots. Tomorrow: Wholesale inventories at 10am, then a speech from FED chair Yellen at 12:30.
The market gapped up 20+ points at the open on rallies in both Asia and Europe. After hitting the OEW 2070 pivot range (2074) in the opening minutes, the market basically sold off for the rest of the day. Enthusiasm overnight, lack of interest during live trading. From yesterday’s SPX 2045 low we have a rally to 2074, then a small abc down to 2051. Should the SPX 2051 low hold, and the market make higher highs, we will have an opportunity for an impulse wave. If not, the correction continues into a possible triangular conclusion: 2044-2084-2045-2074-2046? Short term support is at SPX 2040 and the 2019 pivot, with resistance at the 2070 and 2085 pivots. Short term momentum swung above and then below neutral today. Best to your Friday trading!
MEDIUM TERM: uptrend trying to get started
LONG TERM: bull market