SHORT TERM: flat opening then rally, DOW +60
Overnight the Asian markets lost 0.4%. Europe opened higher and gained 1.0%. US index futures were flat overnight. At 8:30 weekly jobless claims were reported lower: 254K v 258K, the CPI was reported higher: +0.2% v +0.4%, the Philly FED was reported at 2-year high: 21.5 v 7.6, and the NY FED was higher too: 9.0 v 1.5. The market opened 1 point above yesterday’s SPX 2253 close and began to rally. At 10am the NAHB was reported at an 11-year high: 70 v 63. Just past 10am the SPX hit 2268, pulled back to 2263 by 10:30, and then hit 2272 by 11:30. After that the market pulled back to SPX 2258 by 2pm before closing at 2262.
For the day the SPX/DOW gained 0.35%, and the NDX/NAZ gained 0.30%. Bonds lost 24 ticks, Crude ended flat, Gold dropped $13, and the USD hit 13-years highs. Medium term support remains at the 2212 and 2177 pivots, with resistance at the 2270 and 2286 pivots. Tomorrow is Options expiration Friday, and housing starts plus building permits will be reported at 8:30.
The market opened flat today, rallied to SPX 2272, pulled back to 2258, then ended at 2262 for the day. The OEW 2270 and 2286 pivots have offered some resistance, as expected. And yesterday we saw the largest pullback since the 31-point pullback in mid-November. The rally off yesterday’s SPX 2248 low had a good start, but faded in the afternoon. From yesterday’s low the market thus far looks a bit choppy: 2265-2250-2272-2258. Could be some 1-2’s or some abc’s. A drop below SPX 2250, or rise above SPX 2272, should give us the answer. Short term support is at SPX 2250 and SPX 2243, with resistance at the 2270 and 2286 pivots. Short term momentum rose to neutral today and then backed off. Trade what is in front of you!
MEDIUM TERM: uptrend
LONG TERM: uptrend