SHORT TERM: new uptrend highs, DOW +43
Overnight the Asian markets finished flat. Europe opened lower but gained 0.5%. US index futures were higher overnight and the market opened one point above yesterday’s SPX 2101 close. In the opening minutes the market started to pullback. At 10am Existing home sales were reported higher: 5.33M v 5.08M. By 10:30 the SPX had reached 2096 and then started to rally. At 3pm the SPX hit a new uptrend high at 2111. Then a pullback into the close ended the day at SPX 2102.
For the day the SPX/DOW were +0.15%, and the NDX/NAZ were +0.10%. Bonds lost 18 ticks, Crude rose $1.30, Gold dropped $6, and the USD was higher. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 pivot. Tomorrow: the ECB concludes their meeting, weekly Jobless claims and the Philly FED at 8:30, the FHFA index at 9am, and Leading indicators at 10am.
The market opened slightly higher, dipped, and then made new uptrend high at SPX 2111. The short term count remains unchanged with five waves up from SPX 2034: 2061-2040-2088-2074-2111. The market continues to remain positive until the 2085 pivot range is reached again. Then the short term pattern would have reversed to potentially start a downtrend. Short term support remains at the 2085 and 2070 pivots, with resistance at SPX 2116 and the 2131 pivot. Short term momentum displays a negative divergence at today’s high. Trade what’s in front of you!
MEDIUM TERM: uptrend
LONG TERM: bear market rally