SHORT TERM: new uptrend highs, DOW +49
Overnight the Asian markets gained 1.7%. Europe opened higher and gained 1.5%. US index futures were higher overnight. At 8:30 Building permits were reported lower: 1086K v 1167K, and Housing starts were reported lower too: 1089K v 1178K. The market opened 4 points above yesterday’s SPX 2094 close, then rose to 2104 by 11am. After a pullback to SPX 2092 just past 1pm the market started to rise again. Heading into the close the SPX hit 2101 and closed there.
For the day the SPX/DOW gained 0.30%, and the NDX/NAZ lost 0.50%. Bonds lost 7 ticks, Crude rose $1.25, Gold rallied $18, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 pivot. Tomorrow: Existing home sales at 10am.
The market opened higher today, rallied to short term resistance at SPX 2104, pulled back, then closed at 2101. The rally from the recent SPX 2034 low remains underway and is still in its fifth wave. The five waves up were noted in yesterday’s report. Not much has changed, except the first signs of some downside pressure will appear once the market drops below the 2085 pivot. Short term support remains at the 2085 and 2070 pivots, with resistance at SPX 2104 and SPX 2116. Short term momentum ended the day overbought. Trade what’s in front of you!
MEDIUM TERM: uptrend
LONG TERM: bear market