SHORT TERM: gap up opening, DOW +212
Overnight the Asian markets lost 0.3%. Europe opened higher and gained 2.2%. US index futures were higher overnight. At 8:30 weekly Jobless claims were reported higher: 272K v 262K, and Durable goods were reported higher: +4.9% v -5.0%. Then at 9am the FHFA was reported higher: +0.4% v +0.5%. The market gapped up at the open to SPX 1937, ticked up to 1939, and then started to pullback. The SPX had closed at 1930 yesterday. The pullback lasted until just past 10am when the SPX hit 1925, and then the market started to rally. With five to seven point pullbacks along the way the market rallied to SPX 1952 and closed there.
For the day the SPX/DOW gained 1.20%, and the NDX/NAZ gained 0.90%. Bonds gained 10 ticks, Crude rose 90 cents, Gold added $3, and the USD was lower. Medium term support remains at the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Tomorrow: Q4 GDP (est. +0.5%), Personal income/spending, and PCE prices all at 8:30. Then Consumer sentiment at 10am, a speech from FED governor Powell at 10:15, and a speech from FED governor Brainard at 1:30.
A few minutes after today’s gap up opening the first rally of Intermediate C completed at SPX 1939. Then after a pullback to SPX 1925, the market rallied to a higher high at 1952. This gives us three waves up from yesterday’s SPX 1891 Int. B low. Normally after a seven wave A advance, a seven wave C advance usually follows. This uptrend remains on schedule for a high sometime next week. Check yesterday’s update for resistance levels. Short term support is at the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Short term momentum ended the day quite overbought. Best to your Q4 GDP trading tomorrow!
MEDIUM TERM: uptrend likely underway
LONG TERM: bear market