SHORT TERM: gap up opening and rally, DOW +90
Overnight the Asian markets gained 0.5%. Europe opened lower but finished mixed. US index futures were higher overnight and the market gapped up to SPX 2389 at the open. The SPX had closed at 2382 on Friday. The market continued to rise until it hit SPX 2392 around 10am. Then after a pullback to SPX 2387 by 11am it headed even higher. Heading into the close the SPX hit 2395, then closed at 2394.
For the day the SPX/DOW gained 0.45%, and the NDX/NAZ gained 0.85%. Bonds lost 1 tick, Crude rose 35 cents, Gold added $5, and the USD was lower. Medium term support rises to the 2385 and 2336 pivots, with resistance at the 2411 and 2428 pivots. Tomorrow: new home sales at 10am.
The market gapped up at the open today for the second day in a row. The market opened at Friday’s SPX 2389 high and continued to rally. We now have a wave up from SPX 2353 to 2395 with several insignificant pullbacks along the way. Unlike Friday, however, the NAZ/NDX led today’s advance, and is now a bit over 0.50% from its all-time high. The DOW is still over 1.0% below its all-time high. As noted in the weekend update, we prefer the DOW leading at this stage of the uptrend and wave structure. Short term support is at the 2385 pivot and SPX 2353, with resistance at the 2411 and 2428 pivots. Short term momentum displayed a negative divergence all day, but no notable pullback occurred. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend