SHORT TERM: market opens lower then rallies, DOW +107
Overnight the Asian markets lost 1.1%. Europe opened lower but gained 0.4%. US index futures were lower overnight, and the market opened at SPX 2074. The SPX had closed at 2081 on Friday. A few minutes after the open the market started to rally. At 10am the NAHB was reported unchanged at 58. The rally continued throughout the day, with only one 4 point pullback, until the market hit SPX 2095 near the close. Then a late dip ended the day at SPX 2094.
For the day the SPX/DOW were +0.65%, and the NDX/NAZ were +0.50%. Bonds lost 5 ticks, Crude slid 40 cents, Gold slipped $2, and the USD was lower. Medium term support rises to the 2070 and 2085 pivots, with resistance at the 2131 pivot. Tomorrow: Building permits and Housing starts at 8:30.
The market opened the week lower on the Doha meeting failure. Soon after the open the market shrugged it off and started making new uptrends highs by around 10:30. By 11:30 the SPX had reached the 0.618 Int. C to Int. A relationship noted in the weekend update, as the market continued higher. We can now count five waves up from the recent SPX 2034 low: 2061-2040-2088-2074-2095. And a corrective eleven waves up from the SPX 1810 downtrend low. With the negative divergences on the daily charts remaining, the market will need to drop back to the 2070 pivot range to get something going on the downside. Short term support is at the 2085 and 2070 pivots, with resistance at SPX 2104 and SPX 2116. Short term momentum ended the day extremely overbought. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bear market