SHORT TERM: higher open – market rallies, DOW +165
Overnight the Asian markets gained 0.6%. Europe opened higher and gained 0.7%. US index futures were higher overnight, and at 8:30 Export (+0.3% v -0.4%)/Import (-0.1% v -0.1%) prices were reported mixed. The market opened 4 points above yesterday’s SPX 2042 close, rallied to 2050 in the opening minutes and then pulled back to 2040 just past 10am. Then the market started to rally. With just one 4 point rally along the way the SPX hit 2065 just past 3pm. Then a pullback into the close ended the day at SPX 2062.
For the day the SPX/DOW gained 0.95%, and the NDX/NAZ gained 0.80%. Bonds lost 14 ticks, Crude rallied $1.60, Gold was flat, and the USD was higher. Medium term support rises back to the 2043 and 2019 pivots, with resistance again at the 2070 and 2085 pivots. Tomorrow: CPI and Retail sales at 8:30, Business inventories at 10am, then the FED’s beige book at 2pm.
The market opened higher today, pulled back to below yesterday’s SPX 2042 low, then rallied to 2065 before pulling back some late. Since March 30th, when the SPX hit 2072, the market has remained in a choppy 2% trading range. Meanwhile the daily RSI/MACD negative divergences remain. Short term support is at the 2043 and 2019 pivots, with resistance at the 2070 and 2085 pivots. Short term momentum hit overbought again today during the rally. Trade what’s in front of you!
MEDIUM TERM: uptrend
LONG TERM: bear market