SHORT TERM: market drifts higher, DOW +45
Overnight the Asian markets gained 0.8%. Europe opened lower but gained 0.1%. US index futures were higher overnight, and at 8:30 Q1 GDP was reported higher: +0.8% v +0.5%. The market opened two points above yesterday’s SPX 2090 close, then rose to 2097 by 11:30. At 10am Consumer sentiment was reported lower: 94.7 v 95.4. After a pullback to SPX 2092 by 2:30 the market rallied to 2099 and closed there.
For the day the SPX/DOW were +0.35%, and the NDX/NAZ were +0.60%. Bonds lost 12 ticks, Crude ended flat, Gold dropped $9, and the USD was higher. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 pivot. Monday is a national holiday in the US.
The market opened slightly higher today, rallied to SPX 2097, pulled back to the opening level, then rallied to 2099 where it closed. Overall a positive day on extremely light volume again. The market has traded on the lightest volume since Christmas Eve three days this week: Monday, Thursday and Friday. This rally that started about a week and half ago has travelled 73 points without one notable reversal. If it continues to move higher we are likely to get an uptrend confirmation soon. Implications will be noted in the weekend update. Best to your three-day weekend!
MEDIUM TERM: downtrend weakening
LONG TERM: bear market rally