SHORT TERM: slightly higher open then record close, DOW +26
Overnight the Asian markets gained 0.3%. Europe opened higher but ended mixed. US index futures were flat to higher overnight, and the market opened two points above Friday’s SPX 2477 close. Right after the open the market drifted down to SPX 2476 by 10:30, then began to inch its way higher again. In the last hour of trading the SPX hit 2481 and closed there.
For the day the SPX/DOW gained 0.15%, and the NDX/NAZ gained 0.55%. Bonds gained 3 ticks, Crude slipped 30 cents, Gold dipped $1, and the USD was lower. Medium term support rises to the 2479 and 2456 pivots, with resistance at the 2525 pivot. Tomorrow: nothing on the economic agenda.
The market started the week slightly higher today, then basically went into drift mode for the rest of the day until the close. For the past 14 consecutive trading days the market has remained in a very narrow 1% range: 2460-2484. Market is trading like it did before index futures were introduced in the 1980’s. This is clearly illustrated by the recent lowest VIX level since its original inception in 1986. The two previous all-time lows, original formula: 1995 and 2005, and new methodology: 1993 and 2006. Bull market tops have occurred, at the earliest, one year later. Short term count remains unchanged: 2432-2413-2484—, with a possible 4th wave triangle: 2460-2480-2465-2481—. Short term support rises to the 2479 and 2456 pivots, with resistance at 2525 pivot. Short term momentum ended the day slightly overbought. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend