SHORT TERM: gap up opening again, DOW +217
Overnight the Asian markets gained 1.4%. Europe opened higher and gained 1.5%. US index futures were at first much lower overnight, then rebounded on reports of a EU/Greek deal. The market gapped up at the open to SPX 2091 and continued to rally. The SPX had closed at 2077 on Friday. Around 10:30 the SPX hit 2098, then drifted down to 2093 by 1pm. At 2pm the Treasury budget reported another surplus: $51.8bn v $70.5bn. Heading into the close the SPX hit 2101, then dipped to close at 2100.
For the day the SPX/DOW gained 1.15%, and the NDX/NAZ gained 1.60%. Bonds lost 7 ticks, Crude dropped 55 cents, Gold slid $5, and the USD was higher. Medium term support rises to the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: Retail sales and Export/Import prices at 8:30, then Business inventories at 10am.
The market gapped up at the open for the third day in a row. These three gap ups all occurred right after the SPX hit 2045 last Wednesday. The recent market action is certainly starting to look like a kick off to a new uptrend. After hitting a morning high of SPX 2098, beyond the 2085 pivot range, the market pulled back and then made a higher high. We continue to see three waves up from the SPX 2045 low: 2074-2051-2101. The third wave may have a smaller subdivision worth noting: 2076-2067-2101. With the market now heading into the four months of overhead resistance between SPX 2100-2135, we may see some choppiness Tuesday/Wednesday. Short term support is now at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Short term momentum is currently displaying a very slight negative divergence. Best to your trading!
MEDIUM TERM: uptrend trying to get established
LONG TERM: bull market