SHORT TERM: market rallies to all-time high, DOW +113
Overnight the Asian markets gained 0.2%. Europe opened higher and gained 0.2%. US index futures were relatively flat overnight. The market opened 3 points above yesterday’s SPX 2265 close, bounced around a bit in the first half hour, then began to rally. By 3pm the SPX hit a new high at 2285, then closed at 2280.
For the day the SPX/DOW gained 0.60%, and the NDX/NAZ gained 0.80%. Bonds lost 17 ticks, Crude rose 30 cents, Gold slid $6, and the USD was higher. Medium term support rises back to the 2270 and 2212 pivots, with resistance at the 2286 and 2321 pivots. Tomorrow: FHFA housing index at 9am.
Interesting day. The market opened a bit higher, bounced around, and then rallied to new all-time highs. As noted in the weekend update we were not sure if the B wave part of the pullback/correction had ended. Today’s rally added a new twist to that uncertainty. At first glance the rally looks good with XLB, XLE, XLF all up over 1%, and market breadth at new highs. But the advance from SPX 2234 still looks choppy. Until the market clears SPX 2305 we maintain that a choppy B wave is still unfolding short term. Short term support is at the 2270 pivot and SPX 2254, with resistance at the 2286 and 2321 pivots. Short term momentum was extremely overbought at today’s high. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend