SHORT TERM: gap up opening, DOW +35
Overnight the Asian markets gained 0.4%. Europe opened higher and gained 1.2%. US index futures were higher overnight, and the market gapped up to SPX 2053 at the open. The SPX had closed at 2042 on Thursday. At 10am Wholesale inventories were reported lower: -0.5% v +0.3%. Just after the report the SPX hit 2061 and then started to pullback. By 1:30 the SPX had nearly closed the opening gap when hitting 2046. Then after a bounce to SPX 2053 just past 2pm, the market did close the gap hitting 2042 around 3:30. After that the usual bounce into the close ended the week at SPX 2048.
For the day the SPX/DOW gained 0.25%, and the NDX/NAZ were mixed. Bonds lost 7 ticks, Crude rallied $2.25, Gold slipped $2, and the USD declined. Medium term support rises back to the 2043 and 2019 pivots, with resistance again at the 2070 and 2085 pivots. Today the WLEI was reported higher: 51.6% v 50.7%, and the Q1 GDPE was reported lower: +0.1% v +0.7%.
The market gapped up at the open today, hit SPX 2061, and then completely retraced the gap up opening to hit unchanged at 2042 in the last hour of trading. All this despite Crude rallying 6% today to nearly $40. From the SPX 2075 high, set a week ago, the market has been declining in a choppy pattern: 2043-2067-2034-2061-2042 so far. The market needs to take out the recent low and the 2019 pivot, or it may start creeping up again like it did after the SPX 2022 low. Best to your weekend!
MEDIUM TERM: uptrend weakening
LONG TERM: bear market