SHORT TERM: gap up and go Monday, DOW +304
Overnight the Asian markets gained 1.8%. Europe opened higher and gained 2.9%. US index futures were higher overnight, and the market gapped up at the open to SPX 1967. The market had closed at SPX 1951 on Friday. As the rally continued, at 10am ISM services was reported lower: 56.9 v 59.0. At 10:30 the SPX hit 1978, pulled back to 1971 just before 11am, then moved even higher. At 2:30 the SPX hit 1989, then went sideways into a 1987 close.
For the day the SPX/DOW were +1.85%, and the NDX/NAZ were +1.55%. Bonds lost 17 ticks, Crude gained 85 cents, Gold dipped $2, and the USD was higher. Medium term support rises to the 1973 and 1956 pivots, with resistance at the 2019 and 2070 pivots. Tomorrow: the Trade deficit at 8:30.
The market gapped up at the open today to start the week. This is the third gap up opening, in the past four trading days, since the SPX 1872 low. After a choppy beginning off that low the market has rallied 5% in just two days: 1894-1989. This is the second best rally since the late-August, potential Primary IV, double bottom low at SPX 1867 to 1990. The next price obstacle for the SPX is obviously 2000, then the 2019 pivot. If the market can clear those levels, as easily as it cleared the 1956 and 1973 pivots, Primary V should indeed be underway. Short term support is the 1973 and 1956 pivots, with resistance at SPX 2000 and the 2019 pivot. Short term momentum ended the day extremely overbought. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market