SHORT TERM: market drifts higher to start week, DOW +17
Overnight the Asian markets gained 0.1%. Europe opened higher but ended mixed. US index futures were higher overnight, and the market opened at SPX 2164 two points above Friday’s close. In the opening minutes the market dipped down to SPX 2160 then started to drift higher. At 10am the NAHB was reported lower: 59 v 60. Around 3:30 the SPX hit 2168, then dipped to end the day at 2167.
For the day the SPX/DOW gained 0.15%, and the NDX/NAZ gained 0.60%. Bonds gained 3 ticks, Crude dropped 65 cents, Gold rose $2, and the USD was lower. Medium term support remains at the 2131 and 2085 pivots, with resistance at the 2177 and 2212 pivots. Tomorrow: building permits and housing starts at 8:30.
The market opened higher today, dipped, then drifted up for the rest of the day. Not much activity for the past two trading days as the market appears to be consolidating recent gains. We continue with the same short term count: i – ii, and 1-2 with 3 underway. Pullbacks have been small (10-13 pts.) since the wave 2 low at SPX 2089. With the ECB and earnings on deck this week doubt this market will stay quiet for long. Short term support is at the 2131 and 2085 pivots, with resistance at the 2177 and 2212 pivots. Short term momentum ended the day just below overbought. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend