SHORT TERM: higher open then trendless day, DOW +24
Overnight the Asian markets ended mixed. Europe opened higher and gained 0.4%. US index futures were relatively flat overnight. At 8:30 weekly jobless claims were reported lower: 262K v 266K, and the Philly FED was reported higher: 2.0% v -2.9%. The market opened two points above yesterday’s SPX 2182 close, dipped to 2180 in the opening minutes, then rose to 2186 by 11am. At 10am leading indicators were reported higher: 0.4% v 0.3%. Then after a pullback to SPX 2180 again by 12:30 the market rallied to 2187 by the close.
For the day the SPX/DOW were +0.15%, and the NDX/NAZ were +0.15%. Bonds gained 9 ticks, Crude rose $1.35, Gold gained $6, and the USD was lower. Medium term support remains at the 2177 and 2131 pivots, with resistance at the 2212 and 2252 pivots. Tomorrow is option expiration Friday.
The market opened higher today, pulled back, and then went into a 7 point trading range for the day. While today did make a higher high than yesterday, the rally from yesterday’s SPX 2169 low looks choppy. Continue to favor the potential for an uptrend high at SPX 2194, although the Minor 1 – 2 posted has not been totally discounted yet. Thursday or Friday of an options expiration often provides a big move in one direction or another. No move today so it could occur tomorrow. Short term support is at the 2177 and 2131 pivots, with resistance at the 2212 and 2252 pivots. Short term momentum ended the day with a potential negative divergence. Trade what’s in front of you!
MEDIUM TERM: uptrend may have topped
LONG TERM: uptrend