SHORT TERM: gap up opening, DOW +74
Overnight the Asian markets gained 0.9%. Europe opened higher and gained 0.5%. US index futures bounced around overnight, and at 9:15 Industrial production was reported lower: -0.2% v -0.4%. The market gapped up at the open to SPX 2030, ticked up one point, then pulled back to 2024 (yesterday’s close) by 10:30. At 10am Consumer sentiment was reported higher: 92.1 v 87.2. The market then rallied back to SPX 2031 by noon, only to pullback to a lower low at 2020 by 2pm. After that the market rallied to SPX 2034 just before a 2033 close.
For the day the SPX/DOW gained 0.45%, and the NDX/NAZ gained 0.40%. Bonds lost 4 ticks, Crude gained 75 cents, Gold slid $7, and the USD was higher. Medium term support remains at the 2019 and 1973 pivots, with resistance at the 2070 and 2085 pivots. Today the WLEI was reported lower: 47.8% v 48.9%.
The market opened higher today, hit a new high for the uptrend at SPX 2031, pulled back to 2020, and then went into a trading range for the rest of the day until hitting 2034 just before the close. We are still counting the rally from Wednesday’s SPX 1991 low as wave one of Intermediate wave iii. The possible subdivisions are: 2008-1997-2031-2020-2034 so far. Short term support remains at the 2019 pivot and SPX 2000, with resistance at SPX 2040 and the 2070 pivot. Short term momentum set up a potential negative divergence at today’s close. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market