SHORT TERM: choppy day, DOW +6
Overnight the Asian markets gained 0.5%. Europe opened higher and gained 0.7%. US index futures were higher overnight. At 8:30 weekly Jobless claims were reported higher: 274k v 270k, Retail sales were reported higher: +0.6% v -0.3%, and Export (-0.4% v -0.1%)/Import prices (-0.3% v -0.2%) were reported lower. The market opened two points below yesterday’s SPX 2086 close, bounced up to 2088 in the opening minutes, then dropped to 2078 by 10am. At 10am Business inventories were reported higher: +0.8% v +0.3%. The market then rallied to SPX 2087 by 11am, dipped to 2081, then rallied to 2093 by 1pm. After that the market reversed down to SPX 2082, then ticked up to close at 2083.
For the day the SPX/DOW were mixed, and the NDX/NAZ were -0.20%. Bonds lost 16 ticks, Crude dropped $1.10, Gold slid $9, and the USD was higher. Medium term support slips back to the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Tomorrow: the PPI at 8:30, Industrial production at 9:15, then Consumer sentiment at 10am.
The market opened slightly lower today, bounced, pulled back, and then resumed yesterday’s afternoon rally. With today’s pullback and then reversal higher we now have three waves from Wednesday’s SPX 2052 low: 2089-2078-2093. This kind of activity has occurred numerous times over the past several months, and even the past several weeks: from 2045: 2074-2051-2133, from 2064: 2111-2095-2114, from 2087: 2103-2089-2113. The choppy market continues, and no change on the count posted on the hourly chart. Short term support drops to the 2070 pivot and SPX 2052, with resistance at the 2085 pivot and SPX 2114. Short term momentum hit overbought during today’s advance, then dropped to neutral. Best to your Friday trading!
MEDIUM TERM: choppy uptrend continues
LONG TERM: bull market