SHORT TERM: gap up opening again, DOW +145
Overnight the Asian markets gained 2.2%. Europe opened higher and gained 1.1%. US index futures were higher overnight, and at 9am FHFA housing was reported higher: +0.7% v +0.4%. The market gapped up at the open to SPX 2084 and continued to rally. The SPX had closed at 2076 yesterday. By 10:30 the SPX hit 2094. Then after a pullback to SPX 2089 by 12:30 the market hit 2094 again by 2:30. After another dip to SPX 2089 by 3pm, the market bounced to 2095 by 3:30, then closed at 2091.
For the day the SPX/DOW gained 0.75%, and the NDX/NAZ gained 0.70%. Bonds lost 5 ticks, Crude rallied $1.05, Gold slipped $3, and the USD was lower. Medium term support rises to the 2085 and 2070 pivots, with resistance at the 2131 pivot. Tomorrow: weekly Jobless claims and Durable goods at 8:30, Pending home sales at 10am, then a speech from FED governor Powell at 12:30.
The market gapped up for the second day in a row for the first time since mid-April. After opening around the 2085 pivot the market then traded in, and above, its upper band for the rest of the day. This is a much stronger rally than what was expected for an Int. B wave. At today’s high short term momentum was extremely overbought and set up another potential negative divergence. The market now needs to drop below SPX 2069 to get some downside momentum going. Short term support is at the 2085 and 2070 pivots, with resistance at SPX 2111 and the 2131 pivot. Best to your trading!
MEDIUM TERM: downtrend
LONG TERM: bear market