SHORT TERM: gap up opening fades, DOW +23
Overnight the Asian markets gained 0.9%. Europe opened higher and gained 2.3%. US index futures were higher overnight. At 8:30 weekly Jobless claims were reported higher: 282k v 271k, and the Trade deficit narrowed: -$41.9bn v $43.8bn. The market gapped up at the open to SPX 1958 and continued to rally. The market had closed at SPX 1949 yesterday. At 10am ISM services were reported lower: 59.0 v 60.3. Around 11am the SPX hit 1975, was extremely overbought, and then started to pullback. The pullback continued until 3:30 when the SPX hit 1945. Then after a bounce to SPX 1956 the SPX closed at 1951.
For the day the SPX/DOW were +0.10%, and the NDX/NAZ were -0.45%. Bonds gained 9 ticks, Crude rose 60 cents, Gold dropped $8, and the USD was higher. Medium term support remains at the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Tomorrow: monthly Payrolls (est. +221k) at 8:30.
The market had a gap opening for the twelfth day in a row. The rally carried to SPX 1975 closing Tuesday downside gap opening. Then the market dropped to SPX 1945, closing today’s upside gap opening. Market continues its volatility. Thus far the rally off Tuesday’s SPX 1903 low continues to look constructive: 1938-1920-1940-1929-1975-1945. As long as SPX 1940 holds any pullbacks the market could continue to move higher. Short term support is at the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Short term momentum pulled back to neutral after hitting extremely overbought this morning. Best to your Payrolls trading!
MEDIUM TERM: downtrend
LONG TERM: bull market