SHORT TERM: higher open market rallies, DOW +113
Overnight the Asian markets lost 0.1%. Europe opened higher and gained 0.4%. US index futures were higher overnight, and the market opened three points above Friday’s SPX 2099 close. The market continued to rise until it hit SPX 2110 around noon. Then started it to pullback ahead of FED chair Yellen’s speech at 12:30: http://www.federalreserve.gov/newsevents/speech/yellen20160606a.htm. By 1pm the SPX hit 2102 again, and then started to rally. Around 2:30 the SPX hit 2113, then pulled back to close at 2109.
For the day the SPX/DOW gained 0.55%, and the NDX/NAZ gained 0.45%. Bonds slipped 6 ticks, Crude rallied $1.10, Gold added $1, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 pivot. Tomorrow: consumer credit at 3pm.
The market opened higher at SPX 2102, rallied to 2110, pulled back to 2102, an then hit 2113. Its highest level in seven months. After that the market pulled back into the close to end the day at SPX 2109. Thus far from the SPX 2026 downtrend low: we have a rally to SPX 2103, an irregular flat pullback to SPX 2085, and now about a 30 point rally higher. With a slight negative divergence short term the market could have a pullback soon. After that it looks to move higher again. 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: uptrend
LONG TERM: neutral