SHORT TERM: gap up opening, DOW +242
Overnight the Asian markets lost 0.1%. Europe opened higher and gained 0.7%. US index futures were higher overnight, and the market gapped up to SPX 2093 at the open. The market had closed at SPX 2078 on Friday. By 10:30 the SPX had hit 2100. Then after a quick dip to SPX 2097 the rally resumed. At 2:30 the SPX hit 2105. Then after another small dip in the last hour of trading the market closed at SPX 2104.
For the day the SPX/DOW were +1.30%, and the NDZ/NAZ were +1.15%. Bonds lost 12 ticks, Crude gained 90 cents, Gold rose $11, and the USD was lower. Medium term support rises to the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Over the weekend the MMIS was reported higher: 57.4% v 57.2%. Tomorrow: Wholesale inventories at 10am.
The market gapped up at the open today, following Friday’s afternoon rally. The rally paused at SPX 2100, then at 2105, then closed over 2100 yet again. Seems this market has been here many times before during the past six months. In fact, the market has traded +/- 2+% of the 2085 pivot during that entire time. Despite the rally we are maintaining the count that Minute wave C is underway from SPX 2114. Short term support is again at the 2085 and 2070 pivots, with resistance at SPX 2114 and the 2131 pivot. Short term momentum spiked to extremely overbought after Friday’s positive divergence. Best to your trading!
MEDIUM TERM: choppy uptrend continues
LONG TERM: bull market