SHORT TERM: market opens higher, DOW +60
Overnight the Asian markets gained 0.4%. Europe opened higher and gained 0.2%. US index futures were higher overnight, and at 8:30 the NY FED was reported lower: -4.2 v 0.6. The market opened five points above Friday’s SPX 2184 close and rallied to 2194 by 11:30. At 10am the NAHB was reported higher: 60 v 59. After hitting a new high the market went into a small trading range for the rest of the day closing at SPX 2190.
For the day the SPX/DOW gained 0.30%, and the NDX/NAZ gained 0.50%. Bonds lost 11 ticks, Crude rallied $1.35, Gold added $5, and the USD was lower. Medium term support remains at the 2177 and 2131 pivots, with resistance at the 2212 and 2252 pivots. Tomorrow: building permits, housing starts and the CPI at 8:30, then industrial production at 9:15.
The market opened at a new high today, rallied to SPX 2194, then drifted lower for the rest of the day. Thus far it looks like Minor 3 is moving right along, having risen from SPX 2172-2194. Since Minor 1 (2148-2188) was 40 points, Minor 3 would equal that at the 2212 pivot. The first Fibonacci resistance, however, is just ahead a SPX 2200 +/- 2 points. Short term support is at the 2177 and 2131 pivots, with resistance at the 2212 and 2252 pivots. Short term momentum hit quite overbought, and ended the day around neutral. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend