SHORT TERM: DOW makes new highs, DOW +118
Overnight the Asian markets gained 0.2%. Europe opened higher and gained 0.9%. US index futures were higher overnight as well. At 8:30 weekly jobless claims were reported lower: 266K v 269K, and export (0.3% v 0.5%)/import (0.5% v -0.3%) prices were reported higher. The market gapped up at the opening to SPX 2183, ticked up to 2184, then started to pullback. The market had closed at SPX 2175 yesterday. Just past 10am the SPX hit 2179 and then started to rally. The rally lasted until 3:30 when the SPX hit 2188, then a pullback ended the day at 2186.
For the day the SPX/DOW gained 0.55%, and the NDX/NAZ gained 0.45%. Bonds lost 20 ticks, Crude rallied $1.65, Gold dropped $9, and the USD was higher. Medium term support rises back to the 2177 and 2131 pivots, with resistance at the 2212 and 2252 pivots. Tomorrow: the PPI and retail sales at 8:30, followed by consumer sentiment and business inventories at 10am.
The market gapped up at the open today for the first time since last Friday. After some hesitation in the first hour, four of five major indices made new uptrend highs while the NAZ lagged. With the new highs it appears Minor 2, of Int. v, ended yesterday at SPX 2172, and Minor 3 is now underway. We updated the SPX hourly chart this morning. A simple Minor 3 = Minor 1 would target SPX 2212 next. We posted five levels last weekend for a potential uptrend high: 2200, 2212, 2221, 2230 and 2252. Short term support is at the 2177 and 2131 pivots, with resistance at the 2212 and 2252 pivots. Short term momentum rose from yesterday’s positive divergence to overbought today. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend