SHORT TERM: gap down opening reversed, DOW +68
Overnight the Asian markets lost 0.2%. Europe opened higher and gained 0.1%. US index futures were lower overnight, and at 8:30 the NY FED was reported sharply lower: -14.9 v +3.9. The market gapped down at the open to SPX 2081, then slipped further to 2079 in the opening minutes. The SPX had closed at 2092 on Friday. After hitting that low the market then started to rally. The rally continued throughout the day nearly to the close. Just before the close the SPX hit 2103, then closed at 2102.
For the day the SPX/DOW were +0.45%, and the NDX/NAZ were +0.80%. Bonds gained 8 ticks, Crude lost 60 cents, Gold added $3, and the USD was higher. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: Housing starts and Building permits at 8:30.
The market gapped down at the open today, hit the lower level of the 2085 pivot range, then rallied to close the gap and reach SPX 2100 yet again. We now have, from the recent SPX 2052 low: three waves up to 2093, three down to 2079, and now another rally. Another choppy rising pattern with three short term levels just above it: 2105, 2113, 2114. The market hit SPX 2103 just before the close today. No change on the short term count. Short term support is at the 2085 and 2070 pivots, with resistance at SPX 2114 and the 2131 pivot. Short term momentum ended the day overbought. Best to your trading!
MEDIUM TERM: choppy uptrend reaches 2100 again
LONG TERM: bull market