SHORT TERM: higher open – new all-time highs, DOW +118
Overnight the Asian markets lost 0.1%. Europe opened higher and gained 0.9%. US index futures were higher overnight, and at 8:30 weekly jobless claims were reported lower: 234K v 246K. The market opened 3 points above yesterday’s SPX 2295 close, and tried to continue to rise. At 10am wholesale inventories were reported higher: 1.0% v 1.0%. Just past 10am the market broke out to new highs. At 11:30 the SPX hit 2310, pulled back to 2306 by 1pm, then hit 2311 at 2:30. Then a dip into the close ended the day at SPX 2308.
For the day the SPX/DOW gained 0.55%, and the NDX/NAZ gained 0.45%. Bonds dropped 15 ticks, Crude rose 75 cents, Gold slid $9, and the USD was higher. Medium term support remains at the 2286 and 2270 pivots, with resistance at the 2321 and 2336 pivots. Tomorrow: export/import prices at 8:30, consumer sentiment at 10am, then the budget deficit at 2pm.
The market opened higher today, and for the fifth time in two weeks it traded up to the SPX 2298-2301 area. Then it broke out. The rally also carried the SPX past the 2305 level before 11am, eliminating the potential irregular B wave scenario. We then updated the SPX short term charts to display only the count that was posted in orange: Micro 3 of Minute iii underway. Since this should be a third of a third rally, it should act like a third wave. It should not revisit yesterday’s SPX 2285 low. If it does, then the 2321 and 2336 pivots will offer stiff resistance for this uptrend. Short term support is now at the 2286 and 2270 pivots, with resistance at the 2321 and 2336 pivots. Short term momentum hit extremely overbought at today’s high, then ended with a slight negative divergence. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend