SHORT TERM: higher open market rallies, DOW +54
Overnight the Asian markets lost 0.3%. Europe opened lower but gained 0.2%. US index futures were higher overnight, and the market opened two points above yesterday’s SPX 2165 close. In the first few minutes the market dipped to SPX 2163, and then started to rally. The rally continued right into the close, as the SPX only had 2 – 3 point pullbacks during the day, and the market closed at SPX 2175.
For the day the SPX/DOW gained 0.35%, and the NDX/NAZ gained 0.45%. Bonds dropped 4 ticks, Crude slid 50 cents, Gold lost $9, and the USD was higher. Medium term support remains at the 2131 and 2085 pivots, with resistance at the 2177 and 2212 pivots.
The market opened higher today, dipped, and then rallied nearly back to the SPX 2176 uptrend high. While Wednesday/Thursday’s decline from SPX 2176 to 2160 looked like the beginning of Intermediate wave iv in the SPX. The DOW suggested it was only Minor 4 of Int. iii. Thus far it appears the DOW is correct. The sixteen point decline looks more like a Minor wave, than an Int. wave during this uptrend. Should the SPX hit 2176 before dropping lower, the count will be updated to a Minor 4 at SPX 2160 and Minor 5 underway. Adding a third option to the long term count in this weekend’s update. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: uptrend