SHORT TERM: market back to resistance at 2100+, DOW +19
Overnight the Asian markets gained 0.4%. Europe opened higher and gained 1.0%. Market front running more central bank QE? US index futures were flat overnight, and the market opened one point below yesterday’s SPX 2099 close. Soon after, the market started to rally. At 10am Construction spending was reported lower: -0.8% v -1.8%, and ISM manufacturing was reported higher: 53.2 v 51.3. The rally continued until 10:30 when the market hit SPX 2109. Then it started to pullback for the first time since Tuesday. At 3pm the SPX hit 2099, then bounced to close at 2103.
For the day the SPX/DOW gained 0.15%, and the NDX/NAZ gained 0.45%. Bonds gained 9 ticks, Crude rose 85 cents, Gold rallied $19, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 pivot. Today the Q2 GDP est. was lowered: +2.6% v +2.7%.
The market opened slightly lower today, then rallied to SPX 2109 within 4 points of retracing the entire Brexit decline. From Monday’s SPX 1992 low we now have four waves up: 2027-2016-2109-2099-xxxx. A rally back to SPX 2109 would make it a bullish advance, a decline from here a corrective one. More on the current short/medium term action, and other things, in the weekend update. Best to your three day weekend!
MEDIUM TERM: uptrend probably underway
LONG TERM: neutral