SHORT TERM: new uptrend highs, DOW +156
Overnight the Asian markets gained 0.3%. Europe opened lower and lost 0.3%. US index futures were lower overnight. At 8:30 weekly Jobless claims were reported higher: 265K v 259K, and the Philly FED was reported higher: 12.4 v -2.8. The market opened one point below yesterday’s SPX 2027 close, then dipped to 2022 by 10am. At 10am Leading indicators were reported higher: +0.1% v -0.2%. Then market then began to rally. Around 2:30 the SPX hit 2046, then dipped to 2041 to end the day.
For the day the SPX/DOW gained 0.80%, and the NDX/NAZ ended mixed. Bonds rose 9 ticks, Crude rallied $1.65, Gold lost $5, and the USD was lower. Medium term support remains at the 2019 and 1973 pivots, with resistance at the 2043 and 2070 pivots. Tomorrow: Consumer sentiment at 10am, and it’s Options expiration Friday.
After the SPX futures were lower overnight they rallied heading into the open. The market opened slightly lower, dipped a bit more by 10am, and then staged another rally to make new uptrend highs at SPX 2046. Oddly today, while the SPX/DOW gained 0.8% the NDX/NAZ were mixed with the NDX actually negative. For the past week or two the DOW has led the rallies, the NDX/NAZ have lagged, and the SPX has been in the middle somewhere. Seems that the defensive, cyclical stocks, an beaten down stocks have been rallying, while the growth stocks have been dragged along. Could be wrong, but the NDX/NAZ is not leading like it had done for the entire bull market. Nevertheless, the uptrend hit the 2043 pivot range and closed there. Short term support is at the 2019 and 1970 pivots, with resistance at the 2043 and 2070 pivots. Short term momentum hit extremely overbought at the highs and then backed off some. Best to your trading this relentless uptrend!
MEDIUM TERM: uptrend
LONG TERM: bear market