SHORT TERM: gap up opening starts 2017, DOW +119
Overnight the Asian markets gained 0.3%. Europe opened higher and gained 0.3% as well. US index futures were much higher overnight, and the market gapped up at the open to SPX 2256. The SPX had closed at 2239 on Friday. At 10am Construction spending was reported higher: 0.9% v 0.5%, and the ISM was reported higher: 54.7 v 53.2. Soon after 10am the SPX hit 2264 and then started to pullback. The pullback seemed to follow Crude oil lower, after that commodity had hit an 18-month high. At 11:30 the SPX hit 2245 and seemed to stabilize. Heading into the afternoon the market started to drift higher. Then rallied in the last hour of trading to end the day at SPX 2258.
For the day the SPX/DOW gained 0.75%, and the NDX/NAZ gained 0.90%. Bonds lost 6 ticks, Crude dropped $1.20, Gold rallied $9, and the USD was higher. Medium term support remains at the 2212 and 2177 pivots, with resistance at the 2270 and 2286 pivots. Tomorrow: auto sales, and then the FOMC minutes at 2pm.
The market gapped up at the open today for the first time since Monday Dec. 5th. Which was around the beginning of Minute wave iii. Minute wave i of this uptrend, also started right after a Monday gap up opening. Minute v underway? After a rally to SPX 2264 the market dropped to 2245. Then a rally into the close ended the first trading day of 2017 on a positive note. Should the market move higher again tomorrow Minute v can very well be underway. Short term support is at SPX 2248 and SPX 2234, with resistance at the 2270 and 2286 pivots. Short term momentum hit overbought after Friday’s positive divergence and ended there. Best to your 2017 trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend