SHORT TERM: gap up opening again, DOW +123
Overnight the Asian markets gained 0.1%. Europe opened higher and gained 1.4%. US index futures were higher overnight, and rose higher after FED chair Yellen’s testimony: https://www.federalreserve.gov/newsevents/testimony/yellen20170712a.htm, was released at 8:30. The market gapped up at the open to SPX 2439, then continued to 2445 by 10:30. The SPX had close at SPX 2426 yesterday. After a pullback to SPX 2439 just past noon, the market moved a bit higher. At 2pm the Beige book was released: https://www.federalreserve.gov/monetarypolicy/beige-book-default.htm. Around 3:30 the SPX hit 2446, then dipped to close at 2443.
For the day the SPX/DOW gained 0.65%, and the NDX/NAZ gained 1.15%. Bonds rallied 13 ticks, Crude rose 35 cents, Gold added $4, and the USD was higher. Medium term support rises to the 2428 and 2411 pivots, with resistance at the 2444 and 2456 pivots. Tomorrow: jobless claims and the PPI at 8:30, then the budget deficit at 2pm.
The market gapped up at the open today for the second time since last Thursday’s SPX 2408 low. That was the day the NDX/NAZ made its lowest low in about one month, while the SPX missed by 2-points of hitting its 2406 low. Since then the NDX/NAZ has risen for four straight days, while the SPX has rallied: 2432-2413-2446. The DOW, which did not confirm a downtrend, made new uptrend highs today. Since the SPX 2454 uptrend high we have been noting the rally highs during the downtrend: 2450-2443-2439-2432. Today the market blasted right through three of them on its way to 2446. Not an unusual move if this is a B wave of some degree. But definitely something to note. Also, after two failed attempts at breaking the SPX 2406 downtrend low, we now find the SPX within just 8 points of its all-time high. Interesting juncture. Was that it for the downtrend, as Minor wave 5 is now trying to subdivide? If the SPX starts making new highs it is definitely worth considering Minor wave 5 subdivisions. That would make SPX 2454 Minute i, and SPX 2408 Minute ii, with Minute iii underway now. Resilient market. Short term support is at the 2428 and 2411 pivots, with resistance at the 2444 and 2456 pivots. Short term momentum ended the day overbought. Best to your trading!
MEDIUM TERM: downtrend
LONG TERM: uptrend