SHORT TERM: third gap up opening in a row, DOW +218
Overnight the Asian markets gained 0.6%. Europe opened higher and soared 2.8%. US index futures were much higher overnight, and at 8:30 Export (-0.4% v -0.8%)/Import (-0.1% v -0.2%) prices were reported lower. The market gapped up at the open to SPX 2006 and continued to rally. At 12:30 the SPX hit the 2019 pivot, pulled back to 2013 by 1:30, then moved higher. Heading into the close the SPX hit 2022 and closed there.
For the day the SPX/DOW gained 1.45%, and the NDX/NAZ gained 1.80%. Bonds lost 11 ticks, Crude rose 70 cents, Gold dropped $20, and the USD was higher. Medium term support rises to the 2019 and 1973 pivots, with resistance at the 2043 and 2070 pivots. Today the WLEI was reported higher: 46.9% v 46.5%, and GDPn was reported unchanged at +2.2%.
After the market failed twice this week to take out last Friday’s SPX 2009 uptrend high, the selloff to 1969 yesterday suggested the uptrend may have topped. Yesterday’s afternoon buying, however, carried over into today’s open, and the market did make a new uptrend high within the first few minutes of trading. By 12:30 the SPX had reached the 2019 pivot, pulled back six points, and then hot 2022 where it closed. Since this week’s pullbacks did not reach the SPX 1963 level, and drop below, we have yet to post a tentative Major wave B label. Today’s rally pushed the SPX into the upper range of the expected highs for this uptrend that were posted for the past few weeks: the 2019 pivot and SPX 2028. Will review the charts and publish our findings in the weekend update. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bear market