SHORT TERM: gap up opening DOW 20K+, DOW +156
Overnight the Asian markets gained 1.1%. Europe opened higher and gained 1.0%. US index futures were much higher overnight, and at 9am the FHFA housing index was reported higher: 0.5% v 0.4%. The market gapped up at the open to SPX 2291 and continued to rally. The DOW opened over 20K and continued to rally as well. The rally continued throughout the day, with two 4 point pullbacks, until the SPX hit 2300. Then a dip into the close ended the day at SPX 2298.
For the day the SPX/DOW gained 0.80%, and the NDX/NAZ gained 1.00%. Bonds lost 13 ticks, Crude slid 35 cents, Gold dropped $9, and the USD was lower too. Medium term support now rises to the 2286 and 2270 pivots, with resistance at the 2321 pivot. Tomorrow: weekly jobless claims at 8:30, then leading indicators and new home sales at 10am.
The market gapped up at the open for the first time this week. We had a gap up opening on Friday that was sold within the opening minutes. After the opening the market continued to rally, with only two 4 point pullbacks, and hit SPX 2300 just before the close. New all-time highs today, and closing highs, in all four major indices. This is the first time both of these events have occurred together since mid-December. The uptrend may be extending after a period of sideways choppy consolidation. We are still holding to the possibility that this rally is a B wave that started at SPX 2234 (see SPX charts). The upside limit remains SPX 2305 for this scenario. Should the market exceed that level, then it is possible that Minute iii is underway (see DOW charts). Either way, it remains a bull market. Short term support is now at the OEW 2286 and 2270 pivots, with resistance at the 2321 pivot. Short term momentum remained pegged at extremely overbought all day, and now displays a slight negative divergence. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend