SHORT TERM: gap down opening reversed again, DOW +108
Overnight the Asian markets lost 1.7%. Europe opened lower and lost 1.2%. US index futures were lower overnight. At 8:30 monthly Payrolls were reported lower: 215K v 242K, and Unemployment was reported higher: 5.0% v 4.9%. The market gapped down at the open to SPX 2050, dropped to 2044, and then drifted higher ahead of the 10am reports. At 10am Construction spending was reported lower: -0.5% v +1.5%, Consumer sentiment was reported higher: 91.0 v 90.0, and ISM manufacturing was reported higher: 51.8 v 49.5. After the ISM report the market started to rally. At 11:30 the market had closed the opening gap and hit SPX 2065. Then after a pullback to SPX 2059 by 12:30 the market moved even higher. Heading into the last hour of trading the SPX hit 2075 then pulled back to close at 2073.
For the day the SPX/DOW gained 0.60%, and the NDX/NAZ gained 1.00%. Bonds ended flat, Crude dropped $1.65, Gold lost $7, and the USD was lower. Medium term support is at the 2070 and 2043 pivots, with resistance at the 2085 and 2135 pivots. Today the WLEI was reported higher: 50.7 v 49.3, and the GDPN was reported lower: +0.7% v +1.4%.
The market gapped down at the open, dropped to support at the 2043 pivot, then started to rally after the ISM report. In the last hour of trading the SPX hit a new uptrend high at 2075. This has been one relentless rally since the Intermediate wave B low at SPX 1891. Some say it is currency related, others the US is the only place to be invested, still others it is being driven by secondary indices, and some the bull market has resumed. Whatever the reason, markets worldwide have been down the last couple of days, and all the US has done is go sideways then move higher. Will try to make some sense of this in the weekend update. Short term support is at the 2070 and 2043 pivots, with resistance at the 2085 and 2104 pivots. Short term momentum rose from quite oversold this morning to overbought this afternoon. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bear market