SHORT TERM: higher open new highs, DOW +136
Overnight the Asian markets gained 0.5%. Europe opened higher and gained 0.5% as well. US index futures were higher overnight. At 8:15 the ADP was reported higher, then at 8:30 weekly jobless claims were reported higher. The market opened 4-points above yesterday’s SPX 2412 close, then hit 2418 just before 10am. At 10am ISM manufacturing was reported higher, construction spending was reported lower, and auto sales were reported mixed. The market then pulled back to SPX 2414 by 11am before heading even higher. The rally continued for the rest of the day, and the market closed at its high SPX 2430.
For the day the SPX/DOW gained 0.70%, and the NDX/NAZ gained 0.60%. Bonds lost 4 ticks, Crude slipped 30 cents, Gold was flat, and the USD was higher. Medium term support rises to the 2428 and 2411 pivots, with resistance at the 2444 pivot. Tomorrow: monthly payrolls and the trade deficit at 8:30.
The market opened at SPX 2416, rallied to within one point of the 2419 all-time high, then dipped to 2414, before heading to new all-time highs. With today’s rally it looks like the market is in its third wave up from the recent SPX 2353 low: 2419-2404-2430 so far. Lots of upside potential should the DOW and TRAN continue to rally. Short term support is at the 2428 and 2411 pivots, with resistance at the 2444 pivot. Short term momentum ended the day quite overbought. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend