SHORT TERM: gap up opening friday, DOW +66
Overnight the Asian markets gained 0.3%. Europe opened higher and gained 1.3%. US index futures were higher overnight, and the market gapped up at the open to SPX 2048. The market had closed at SPX 2040 yesterday. At 10am Existing home sales were reported higher: 5.45M v 5.33M. The market continued to rally until 11:30 when the SPX hit 2058. Then after a pullback to SPX 2048 by 3:30 the market bounced to close at 2052.
For the day the SPX/DOW gained 0.50%, and the NDX/NAZ gained 1.15%. Bonds gained 2 ticks, Crude slipped 20 cents, Gold dipped $2, and the USD was lower. Medium term support rises to the 2043 and 2019 pivots, with resistance at the 2070 and 2085 pivots.
The market gapped up at the open today, traded as high as SPX 2058, and then pulled back. The market did clear the 2043 pivot range today and it looks like it is headed, over the next few days, to the 2070 pivot range next. This was noted yesterday after the SPX 2026 low, that formed a positive divergence. Today we updated the charts to clear the i/a and ii/b counts. More on this in the weekend update. Best to your weekend!
MEDIUM TERM: downtrend
LONG TERM: bear market