SHORT TERM: gap up opening, DOW +84
Overnight the Asian markets gained 0.9%. Europe opened higher and gained 1.7%. US index futures were higher overnight, and at 8:15 the ADP index was reported lower: 200K v 214K. The market gapped up at the open to SPX 2066 and continued to rise. The market had closed at SPX 2055 yesterday. Around 11am the SPX hit 2072, was extremely overbought, and started to pullback. The pullback lasted until 1:30 when the SPX hit 2060. Then after a bounce to SPX 2069 by 3:30, the market pulled back to close at 2064.
For the day the SPX/DOW gained 0.45%, and the NDX/NAZ gained 0.50%. Bonds gained 2 ticks, Crude was flat, Gold dropped $17, and the USD was lower. Medium term support remains at the 2043 and 2019 pivots, with resistance and the 2070 and 2085 pivots. Tomorrow: weekly Jobless claims at 8:30, then the Chicago PMI at 9:45.
The market gapped up at the open adding to yesterday afternoon’s Yellen speech rally. It opened within the 2070 pivot range, traded around the range until 1pm. Dipped to SPX 2060, and then moved higher again in the afternoon. With today’s activity the market has posted a new uptrend high at SPX 2072. This clearly eliminated the potential uptrend high at SPX 2057, and eliminated the rising channel as well. Hard to even guesstimate where this uptrend is going to end at this point. Maybe Friday will give us the answer. Short term support remains at the 2043 and 2019 pivots, with resistance at the 2070 and 2085 pivots. Short term momentum backed off from extremely overbought this morning. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bear market