SHORT TERM: gap up and go Thursday, DOW +217
Overnight the Asian markets gained 1.4%. Europe opened higher and gained 1.3%. US index futures were higher overnight as well. At 8:30 weekly Jobless claims were reported lower: 255K v 263K, the CPI was reported lower: -0.2% v -0.1%, and the NY FED was reported lower: -11.4 v -14.7. The market gapped up at the open to SPX 2000, rallied up to 2005, then went into a small trading range. At 10am the Philly FED was reported lower: -4.5 v -6.0. The market then moved up to SPX 2008 by 11am, pulled back to 1997 by noon, and then moved higher again. Heading into the close the SPX hit 2024 and closed there.
For the day the SPX/DOW were +1.40%, and the NDX/NAZ were +1.70%. Bonds lost 13 ticks, Crude gained 15 cents, Gold dipped $5, and the USD was higher. Medium term support rises to the 2019 and 1973 pivots, with resistance at the 2070 and 2085 pivots. Tomorrow: Industrial production (est. -0.2%) at 9:15, and Consumer sentiment at 10am.
The market gapped up at the open today, hit SPX 2008, pulled back to 1997 failing to close the opening gap, then moved to new highs for the Major wave 3 rally. After completing Int. wave i at SPX 2022 on Tuesday, the market pulled back to 1991 on Wednesday. It appears that pullback was good enough for Int. wave ii as the market rallied to SPX 2024 today. Once the market can clear the SPX 2020’s and the 2040’s, there is little overhead resistance until the 2130’s. We updated the hourly/daily chart this afternoon after the SPX exceeded 2022. Int. wave iii appears to be underway. Short term support is at the 2019 pivot and SPX 2000, with resistance at SPX 2040 and the 2070 pivot. Short term momentum rose from that slight positive divergence to slightly overbought today. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market