SHORT TERM: slightly higher open then new highs, DOW +85
Overnight the Asian markets gained 0.1%. Europe opened higher but lost 0.2%. US index futures were relatively flat overnight. At 8:30 the CPI was reported flat, and retail sales were reported lower. At 9:15 industrial production and capacity utilization were both reported higher. The market opened one point above yesterday’s SPX 2448 close, dipped to 2447, and then started to move higher. At 10am business inventories were reported higher, and consumer sentiment lower. Around 12:30 the SPX exceeded its all-time high and continued to rally. At 3:30 the SPX hit 2464, then pulled back to 2459 to end the day.
For the day the SPX/DOW gained 0.45%, and the NDX/NAZ gained 0.70%. Bonds rose 7 ticks, Crude gained 55 cents, Gold rallied $10, and the USD was lower. Medium term support rises to the 2456 and 2444 pivots, with resistance at the 2479 pivot. Today the Q2 GDP estimate was lowered to 2.4% v 2.7%.
After a quiet open, and small pullback, the market rallied to new all-time highs today. After only a 2% correction the SPX is now in a new uptrend. Relentless bull market. Went back to 1982, and could not a find a correction this small in a bull market. Nevertheless, the parameters offered yesterday remain unchanged. If this uptrend fails to exceed the OEW 2479 pivot range it will be counted as a B wave rally in an overall Int. wave iv correction. If it exceeds that pivot, then it would be Minute iii of Minor 5, with Minute i (2454) and Minute ii (2408). Remember we are dealing with probabilities not guarantees. Thus far we have a three wave rally from SPX 2408: 2432-2413-2464. SPX 2432 remains an important level for either an impulsive/corrective rally. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: uptrend