SHORT TERM: market drifts higher, DOW +69
Overnight the Asian markets gained 0.5%. Europe opened higher but lost 0.4%. US index futures were lower overnight. At 8:30 the PPI was reported higher: +0.2% v +0.4%. Then at 9:15 Industrial production was reported higher: +0.6% v +0.2%, as was Capacity utilization: 78.0% v 77.8%. The market opened one point below yesterday’s SPX 2083 close, then bounced up to 2088 by 10am. At 10am Consumer sentiment was reported lower: 92.9 v 93.1. The market then pulled back to SPX 2081 by 11:30, and started to rally. The rally continued into the last hour of trading when the SPX hit 2092, where it closed.
For the day the SPX/DOW were +0.40%, and the NDX/NAZ were +0.25%. Bonds lost 4 ticks, Crude dipped 15 cents, Gold ended flat, and the USD was higher. Medium term support rises to the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Today the WLEI was reported flat at 50.2%.
The market opened slightly lower today, bounced to SPX 2088, pulled back to 2081, then rallied to 2092 in the last hour of trading. The choppy rally from Wednesday’s SPX 2052 low appears to be still underway. A few ticks higher and the RSI could set up another short term negative divergence. For now the count remains the same: Minute C underway. Short term support is now at the 2085 anf 2070 pivots, with resistance at the SPX 2114 and the 2131 pivot. Short term momentum ended the week nearly overbought. Best to your weekend!
MEDIUM TERM: choppy uptrend continues
LONG TERM: bull market