SHORT TERM: consolidation day, DOW +34
Overnight the Asian markets gained 0.9%. Europe opened higher and gained 0.7%. US index futures were higher overnight, and at 8:30 Export (-0.6% v -1.3%)/Import (-0.3% v -0.4) prices were both reported lower. The market opened at SPX 2015, two points above yesterday’s close. Within a few minutes the SPX hit 2020, a new high for the rally. Just past 10am the SPX pulled back to 2011. At 10am Wholesale inventories were reported higher: +0.1% v -0.1%. A rally back to SPX 2020 followed by 11am. Then the market pulled back even further, hitting SPX 2008 by 1:30. A little rally into the close ended the week at SPX 2015.
For the day the SPX/DOW gained 0.15%, and the NDX/NAZ gained 0.40%. Bonds lost 1 tick, Crude added 10 cents, Gold rallied $17, and the USD was lower. Medium term support remains at the 1973 and 1956 pivots, with resistance at the 2019 and 2070 pivots. Today the WLEI was reported higher: 48.9% v 48.3%.
The market opened higher today, made a new high for the rally at SPX 2020, then went into pullback mode for the rest of the day. The last time the market hit this level, in mid-September, we expected five waves down would follow. Which it did. This time we are expecting five larger waves up will follow. Time will tell. No change in the count. Short term support is at SPX 2000 and the 1973 pivot, with resistance at the 2019 pivot and SPX 2040. Short term momentum declined to neutral after today’s negative divergence. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market