SHORT TERM: gap up and go, DOW +321
Overnight the Asian markets lost 0.4%. Europe opened lower but gained 1.7%. US index futures were higher overnight. At 8:30 weekly Jobless claims were reported higher: 259K v 255K, then at 9am the FHFA was reported higher: +0.3% v +0.6%. The market gapped up at the open to SPX 2033 and continued to rally. The market had closed at SPX 2019 yesterday. At 10am Existing home sales were reported higher: 5.55M v 5.31M, and Leading indicators were reported lower: -0.2% v +0.1%. The market continued to rally until hitting SPX 2055 at 12:30. Then it started to pullback. The pullback lasted until 2:30 when the SPX hit 2042. Then the market rallied into the close to end the day at 2053.
For the day the SPX/DOW gained 1.75%, and the NDX/NAZ gained 1.85%. Bonds gained 3 ticks, Crude rose 25 cents, Gold added $1, and the USD was higher. Medium term support remains at the 2019 and 1970 pivots, with resistance at the 2070 and 2085 pivots. Tomorrow: no economic reports.
The market gapped up at the open today to SPX 2033, and by 10am the market was already at new uptrend highs. Heading into the afternoon the SPX hit 2055, then pulled back to 2042 by 2:30. After that it drifted higher into the close. When the market made a new uptrend high we placed the Minor wave 2 label at yesterday’s SPX 2017 low. Minor wave 3 appears to be underway and is already subdividing. Expecting the two overhead pivots to be challenged next. Short term support is now at SPX 2040 and the 2019 pivot, with resistance at the 2070 and 2085 pivots. Short term momentum hit overbought today, after yesterday’s oversold, and ended there. Best to your Friday trading!
MEDIUM TERM: uptrend
LONG TERM: bull market