SHORT TERM: gap up opening rally, DOW +144
Overnight the Asian markets lost 0.4%. Europe opened lower and lost 0.3%. US index futures ignored all that and were higher heading into the open. The market gapped up at the open to SPX 2433, dipped to 2428 in the opening minutes, then resumed the rally. At 10am pending home sales were reported lower. Around 1:30 the SPX hit 2443, then went sideways for the rest of the day to close at 2441.
For the day the SPX/DOW gained 0.80%, and the NDX/NAZ gained 1.45%. Bonds slipped 2 ticks, Crude rose 55 cents, Gold added $1, and the USD was lower. Medium term support rises to the 2428 and 2411 pivots, with resistance at the 2444 and 2456 pivots. Tomorrow: Q1 GDP (est. 1.2%) and jobless claims at 8:30.
The market gapped up at the open today for the second day this week. Normally this kind of activity occurs during an uptrend. Due to Tuesday’s selloff, however, the SPX is barely positive on the week. The short term action since the June 9th SPX 2416 low continues to look corrective. Three-waves up: 2444-2419-2454, three-waves down: 2431-2450-2419, and now this rally. The NDX/NAZ continue to look choppy as well. Short term support is at the 2428 and 2411 pivots, with resistance at the 2444 and 2456 pivots. Short term momentum rose from being quite oversold yesterday to overbought today. Best to your trading!
MEDIUM TERM: uptrend topped?
LONG TERM: uptrend