SHORT TERM: gap up and go day, DOW +251
Overnight the Asian markets lost 0.7%. European markets opened higher and gained 1.6%. US index futures were higher overnight, and rallied when monthly Payrolls were reported higher at 8:30: 287K v 38K. The market gapped up at the open to SPX 2113 and continued to rally. The SPX had closed at 2098 yesterday. At 3pm Consumer credit was reported higher: $18.6B v $13.4B. Also at 3pm the SPX hit 2132, then pulled back to 2127, before closing at 2130.
For the day the SPX/DOW gained 1.45%, and the NDX/NAZ gained 1.60%. Bonds gained 3 ticks, Crude rose 5 cents, Gold gained $7, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2177 pivots.
The market gapped up at the open on a surprising monthly Payrolls report. After about an hour of trading the SPX cleared all the resistance levels noted yesterday. In fact the SPX rallied to its highest level since June 2015. With the WROC signal last week, suggesting an uptrend was underway, and an uptrend confirmation, today looks like a game changing event. Lots to cover in the weekend update, plus some count upgrades. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: nearly uptrend