SHORT TERM: new uptrend highs, DOW +18
Overnight the Asian markets gained 0.9%. Europe opened higher and gained 1.0%. US index futures were higher overnight. The market opened three points above yesterday’s SPX 2109 close, and continued to rise. At 2:30 the SPX hit 2119 and then began to pullback. At 3pm consumer credit was reported lower: $13.4B v $29.6B. The pullback took the market down to SPX 2112 where it closed.
For the day the SPX/DOW gained 0.10%, and the NDX/NAZ lost 0.20%. Bonds gained 2 ticks, Crude rose 80 cents, Gold slipped $1, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 pivot. Today investor sentiment was reported bullish but lower: 52.9% v 54.6%.
The market opened higher today, rallied to a new uptrend high at SPX 2119, then pulled back into the close. Thus far we have observed three significant waves from the SPX 2026 downtrend low: 2103-2085-2119. Short term momentum was quite overbought at today’s high, after breaking through yesterday’s slight negative divergence. Short term support remains at the 2085 and 2070 pivots, with resistance at the 2131 pivot. Short term momentum has declined to below neutral after hitting quite overbought. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: neutral