SHORT TERM: gap up and go Tuesday, DOW +193
Overnight the Asian markets gained 0.4%. Europe opened higher and gained 1.6%. US index futures were higher overnight, and at 9am Case-Shiller was reported higher: +5.5% v +5.5%. The market gapped up at the open to SPX 2070 and continued to rally. The SPX had closed at 2057 yesterday. At 10am Consumer confidence was reported higher: 96.5 v 90.4. The rally continued until 10:30 when the SPX hit 2077. Then after a pullback to SPX 2072 by noon, the market moved even higher. Just past 3pm the SPX hit 2082, then pulled back to close at 2078.
For the day the SPX/DOW gained 1.10%, and the NDX/NAZ gained 1.40%. Bonds dropped 21 ticks, Crude added 70 cents, Gold slipped $1, and the USD was higher. Medium term support rises to the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Tomorrow: Pending home sales at 10am.
The market gapped up at the open to a new rally high, then after a small pullback moved above the mid-December SPX 2077 high. Holding above the SPX 2042 support level yesterday and clearing the 2070 pivot range today, are both positives for this potential uptrend. The next objective, of course, would be to clear the 2085 pivot range (2092). Short term support is now at the 2070 pivot and SPX 2042, with resistance at the 2085 pivot and SPX 2104. Short term momentum rose from yesterday’s oversold condition to quite overbought today. Best to your holiday week trading!
MEDIUM TERM: positive response to inflection point
LONG TERM: bull market