SHORT TERM: higher open in quiet trading, DOW +43
Overnight the Asian markets lost 0.2%. Europe opened higher and gained 0.2%. US index futures were lower, then higher, overnight. At 8:30 new home sales were reported lower: 569k v 642k. The market opened 4 points above yesterday’s SPX 2394 close, then pulled back to 2394 by 10am. Just past noon the SPX hit 2401, then pulled back to 2397 by 1pm. After that the market traded in a 4-point range closing at SPX 2398.
For the day the SPX/DOW gained 0.20%, and the NDX/NAZ gained 0.05%. Bonds lost 9 ticks, Crude rose 40 cents, Gold dropped $8, and the USD was higher. Medium term support remains at the 2385 and 2336 pivots, with resistance at the 2411 and 2428 pivots. Tomorrow: existing home sales at 10am, then the FOMC minutes at 2pm.
The market opened above yesterday’s high today, hit SPX 2401 around noon, then traded sideways for the rest of the day. The rally from last week’s SPX 2353 low continues. Today the SPX/DOW outperformed the NDX/NAZ which is positive medium term. While the DOW is still a way from all-time highs, the SPX is now closer to its all-time high, in percentage terms, than the NAZ. Should the cyclicals continue to lead, this uptrend should continue higher. Short term support is at the 2385 pivot and SPX 2353, with resistance at the 2411 and 2428 pivots. Yesterday’s potential short term negative divergence was cleared early today with the higher highs, and momentum ended the day overbought. Best to your trading! The Swarm is next.
MEDIUM TERM: uptrend
LONG TERM: uptrend