SHORT TERM: gap up opening rally, DOW +130
Overnight the Asian markets gained 1.6%. Europe opened higher, on Bremain optimism, and gained 3.3%. US index futures were much higher overnight, and the market gapped up to SPX 2092 at the open. The SPX had closed at 2071 on Friday. Around 10am the SPX hit 2101 and then began to pullback. The pullback continued throughout the day and the market closed at its low SPX 2083.
For the day the SPX/DOW gained 0.65%, and the NDX/NAZ gained 0.70%. Bonds lost 13 ticks, Crude rallied $1.25, Gold dropped $8, and the USD was lower. Medium term support remains at the 2070 and 2043 pivots, with resistance at the 2085 and 2131 pivots. Tomorrow: FED chair Yellen testifies before Congress on the economy, and FED governor Powell gives a speech at 2:30.
The market gapped up to start the week, hit SPX 2101, and then pulled back for the rest of the day. With the market opening at SPX 2092 it cleared resistance at 2086, suggesting the uptrend is resuming after last week’s large pullback. Thus far we can count three waves up from Thursday’s SPX 2050 low: 2080-2063-2101. Next resistance is at SPX 2121 and the 2131 pivot, with support at the 2070 and 2043 pivots. Short term momentum was quite overbought at today’s high and then backed off below neutral. Currencies and Bookies now suggest there will be no Brexit. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: neutral