SHORT TERM: gap up and go Friday, DOW +370
Overnight the Asian markets lost 1.4%. Europe opened lower and lost 0.4%. US index futures were higher overnight. At 8:30 monthly Payrolls were reported lower: 211K v 271K, the Unemployment rate was reported unchanged at 5%, and the Trade deficit widened: -$43.9B v -$40.8B. The market gapped up at the open to SPX 2058 and continued to rally. The market had closed at SPX 2050 yesterday. Just before 10am the SPX hit 2071, dipped to 2065 just past 10am, then rallied to 2079 by 11am. After a pullback to SPX 2070 by noon the market moved even higher. Heading into the last hour of trading the SPX hit 2094 then dipped to end the week at 2092 — +2 points for the week.
For the day the SPX/DOW gained 2.10%, and the NDX/NAZ gained 2.25%. Bonds gained 14 ticks, Crude dropped $1.00, Gold rallied $23, and the USD was higher. Medium term support jumps up to the 2085 and 2070 pivots, with resistance once again at the 2131 and 2145 pivots. Today the WLEI was reported higher: 48.8% v 48.o%, and the Q4 GNP was reported lower: +1.5% v +1.8%.
The market gapped at the open today, after yesterday’s late afternoon pullback low of SPX 2042, and continued to rally throughout the day. As bad as yesterday’s pullback was, today’s rally was even better. We noted a missed wave in the recent rally from SPX 2070 to 2104 this morning, sorry I am not perfect, and noted a diagonal triangle on the hourly chart. This allowed the possibility of a subdividing Major wave 5 into five Intermediate waves. We then posted the updated labels on the SPX hourly chart. Details in the weekend update. Short term support is at the 2085 and 2070 pivots, with resistance at SPX 2104 and SPX 2116. Short term momentum spiked from extremely oversold yesterday to overbought during today’s big rally. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market