SHORT TERM: eleventh straight gap opening, DOW +293
Overnight the Asian markets lost 0.8%. Europe opened higher and gained 0.4%. US index futures were higher overnight, and at 8:15 the ADP was reported higher: 190k v 185k. The market gapped up at the open to SPX 1935, ticked up to 1938, then started to pullback. The SPX had closed at 1914 yesterday. At 10am Factory orders were reported higher: +0.4% v +1.8%. By 10:30 the SPX had pulled back to 1920. Then after a rally to SPX 1932 by 11:30 the market pulled back to 1920 again by 12:30. After that the market rose into the: http://www.federalreserve.gov/monetarypolicy/beigebook/beigebook201509.htm at 2pm. After hitting SPX 1940 just after the report the market pulled back to 1929 just past 3pm. Then a rally into the close ended the day at SPX 1949.
For the day the SPX/DOW were +1.80%, and the NDX/NAZ were +2.60%. Bonds lost 5 ticks, Crude gained 60 cents, Gold slid $6, and the USD was higher. Medium term support rises to the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Tomorrow: weekly Jobless claims and the Trade deficit at 8:30, then ISM services at 10am.
The market gapped up at the open today, breaking the three consecutive gap down opening streak. Initially the SPX rallied to 1938. Then it pulled back to SPX 1920, rallied, then hit 1920 again. After that it rallied, post Beige book, to SPX 1949. After yesterday’s gap down opening the SPX rallied into the lower 1940’s three times before heading lower in the afternoon. Today it found resistance there again, and then ralled beyond it in the last hour of trading. Overall it was a constructive day. Short term support is at the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Short term momentum rose to overbought during today’s rally. Best to your trading!
MEDIUM TERM: downtrend
LONG TERM: bull market