SHORT TERM: another gap up opening, DOW +60
Overnight the Asian markets were mixed, but Japan rose 2.5%. Europe opened higher and gained 0.1%. US index futures were higher overnight, and before the open monthly auto sales were reported higher. The market gapped up at the open to SPX 2266, ticked up to 2268, then pulled back to 2263 by 10:30. Then the market started to drift higher. At 2pm: https://www.federalreserve.gov/newsevents/press/monetary/20170104a.htm. Heading into the close the SPX hit 2273, then closed at 2271.
For the day the SPX/DOW gained 0.45%, and the NDX/NAZ gained 0.70%. Bonds added 4 ticks, Crude rose 80 cents, Gold gained $4, and the USD was lower. Medium term support now rises to the 2270 and 2212 pivots, with resistance at the 2286 and 2321 pivots. Tomorrow: the ADP at 8:15, weekly jobless claims at 8:30, then ISM services at 10am.
The beginning of 2017 looks quite the opposite of the first few days of 2016. The market opened with a gap up today for the second day in a row. This has not occurred in three months. The market opened at SPX 2266, dipped, and then hit 2273. This two day rally certainly looks like Minute wave v is underway, and is now labeled accordingly. Keep in mind, however, that the count on the hourly chart is the most conservative one. As there are several other possible counts that suggests much higher prices for this uptrend. Conservatively the Minute v count suggests a potential topping range between SPX: 2290 and 2325. Let’s see what this uptrend looks like when/if the market gets there. Short term support is at the 2270 pivot and SPX 2245, with resistance at the 2286 and 2321 pivots. Short term momentum ended the day quite overbought. Best to your 2017 trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend