SHORT TERM: market watches GOP star wars, DOW +45
Overnight the Asian markets gained 0.8%. Europe opened higher but lost 0.3%. US index futures were higher, then lower, overnight, and at 8:30 weekly Jobless claims were reported higher: 278K v 272K. The market opened three points below yesterday’s SPX 1986 in another quiet opening. At 10am ISM services was reported lower: 53.4 v 53.5, and Factory orders were reported higher: +1.6% v -2.9%. The market continued its pullback until hitting SPX 1977 at 10:30. Then after a rally to SPX 1986 by 11am, it pullback to 1977 again by 11:30. Then the market started to work its way higher, for the second day in a row, after Europe closed. Heading into the close the SPX hit 1994 then dipped to close at 1993.
For the day the SPX/DOW gained 0.30%, and the NDX/NAZ ended mixed. Bonds gained 4 ticks, Crude slipped 5 cents, Gold rose $20, and the USD was lower. Medium term support remains at the 1973 and 1956 pivots, with resistance at the 2019 and 2043 pivots. Tomorrow: monthly Payrolls (est. +185K), and the Trade deficit at 8:30.
The market opened lower today, dipped to SPX 1977, rallied back to unchanged, then dipped to 1977 again. After that it worked its way higher to a new uptrend high at SPX 1994. Since Monday’s SPX 1932 low this market has rallied over 60 points with just several pullbacks of 10 points or less. At SPX 1998 it will have equaled the largest rally, without a notable pullback, since the uptrend began. And, be within one point of a 61.8% retracement of the previous downtrend. Then there is the SPX 2000 psychological level as well. This uptrend needs to clear that SPX 1998-2000 range before it can attempt to make it to the next pivot at 2019. Short term support is at the 1973 and 1956 pivots, with resistance at SPX 1999 and the 2019 pivot. Short term momentum is displaying a clear double negative divergence at today’s high. Best to your trading Payrolls tomorrow!
MEDIUM TERM: uptrend
LONG TERM: bear market