SHORT TERM: lower opening then new highs, DOW +65
Overnight the Asian markets gained 0.3%. Europe opened higher and continued their winning streak gaining 1.0%. US index futures were lower overnight, and at 8:30 weekly jobless claims were reported lower: 258K v 268K. The market opened 2 points below yesterday’s SPX 2241 close, bounced to 2244, then pulled back to 2238 by past 10am. Then it began to rally. At 2pm the SPX hit another new high at 2252 then started to pullback. The pullback lasted until just before 3pm when the SPX hit 2243, then a bounce into the close ended the day at 2246.
For the day the SPX/DOW gained 0.30%, and the NDX/NAZ gained 0.30%. Bonds lost 12 ticks, Crude rallied $1.05, Gold slipped $2, and the USD was higher. Medium term support remains at the 2212 and 2177 pivots, with resistance at the 2270 pivot. Tomorrow: consumer sentiment and wholesale inventories at 10am.
The market opened slightly lower today, bounced around a bit in the first half-hour, then rallied to new highs into the afternoon at SPX 2252. Quite a rally from last Thursday’s SPX 2187 low. Europe has also been rallying as it has gained 0.9% or more four days in a row. Today’s pullback from SPX 2252 to 2243 is the largest pullback since last Friday’s SPX 2198-2188 pullback. This suggests the market may have just traced out 4 small waves from last Thursday’s low. As overbought as short term momentum was today it was not surprising. Looks like there is a good chance of the market hitting the SPX 2270 pivot range soon. Short term support is at the 2212 and 2177 pivots, with resistance at the 2270 pivot. Short term momentum declined from extremely overbought to just under overbought this afternoon. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend