SHORT TERM: gap up opening, DOW +248
Overnight the Asian markets lost 0.5%. Europe opened lower and lost 0.2%. US index futures were higher overnight. At 8:30 Housing starts were reported lower: 1060K v 1206K, and Building permits were reported higher: 1150K v 1103K. The market gapped up at the open to SPX 2059, hit 2064 by 10am, and then began to pullback. The market had closed at SPX 2050 yesterday. By 10:30 the SPX hit 2058, and then started to work its way higher. At 1:30 the SPX hit 2069, pulled back to 2064 by 2pm just when the FED’s FOMC minutes: http://www.federalreserve.gov/newsevents/press/monetary/20151118a.htm were released. Then after a little choppy action the market took off to the upside. Heading into the close the SPX hit 2085 and closed at 2084.
For the day the SPX/DOW gained 1.50%, and the NDX/NAZ gained 1.85%. Bonds lost 4 ticks, Crude rose 30 cents, Gold added $1, and the USD was lower. Medium term support now rises to the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Tomorrow: weekly Jobless claims at 8:30, then the Philly FED and Leading indicators at 10am. There is also another FED speech after hours by FED vice chair Fischer.
The market gapped up at the open today for the first time since the beginning of the month. Heading into the afternoon the market cleared yesterday’s SPX 2067 high, hit 2069, and then awaited the FOMC minutes. After they were released at 2pm the market resumed its rally hitting SPX 2085 in the last hour of trading. Earlier in the day we updated the temporary Int. ii labeling on the SPX hourly chart. We continue to conservatively count the current rally, from the Major wave 4 SPX 2019 low, as Int. i SPX 2067, Int. ii SPX 2046, and Int. iii underway. Still expecting new all time highs before Int. iii concludes. Short term support is at the 2070 pivot and SPX 2040, with resistance at the 2085 pivot and SPX 2116. Short term momentum ended the day extremely overbought. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market