SHORT TERM: quiet opening, higher highs, DOW +34
Overnight the Asian markets gained 3.1%. European market opened higher and gained 0.3%. US index futures were lower overnight, and at 8:15 the ADP index was reported higher: +214K v +205K. The market opened four points below yesterday’s SPX 1978 close, ticked down to 1971, and then rallied back to 1978 by 10am. Then after a pullback to SPX 1969 by 10:30 the market rallied to 1981 by 11am. Another pullback followed to SPX 1971 by noon, then the market rallied again. At 2pm the FED released its Beige book: http://www.federalreserve.gov/monetarypolicy/beigebook/beigebook201603.htm. Heading into the close the market hit SPX 1987, then ticked down to close at 1986.
For the day the SPX/DOW gained 0.30%, and the NDX/NAZ gained 0.15%. Bonds dropped 7 ticks, Crude gained 50 cents, Gold rallied $9, and the USD was lower. Medium term support remains at the 1973 and 1956 pivots, with resistance at the 2019 and 2043 pivots. Tomorrow: weekly Jobless claims at 8:30, then Factory orders and ISM services (est. 53.0) at 10am.
After yesterday’s uptrend high at SPX 1978, the market opened lower today, bounced around, and then hit 1969 in the first hour of trading. After that it worked its way higher to set a new uptrend high at SPX 1987. With the clearing the of the 1973 pivot range the next target appears to be SPX 1999, the 61.8% retracement level of the downtrend. No change in the short term or medium term count. Short term support remains at the 1973 and 1956 pivots, with resistance at SPX 1999 and the 2019 pivot. Short term momentum ended the day with a potential negative divergence. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bear market