SHORT TERM: gap up opening, DOW +135
Overnight the Asian markets gained 0.1%. Europe opened higher and gained 1.0%. US index futures were higher overnight. The market gapped up to SPX 2458 at the open and continued to rally. The market had closed at SPX 2441 Friday. Just before 11am the SPX hit 2468, pulled back to 2463 by 3pm, then bounced to closed at 2466.
For the day the SPX/DOW gained 0.80%, and the NDX/NAZ gained 1.30%. Bonds dropped 9 ticks, Crude lost $1.35, Gold slid $9, and the USD was higher. Medium term support jumps to the 2456 and 2444 pivots, with resistance at the 2479 and 2525 pivots. Tomorrow: retail sales, export/import prices, the NY FED all at 8:30, then the NAHB and business inventories at 10am.
The market gapped up today for the first time in two weeks. It gapped over the 2444 and 2456 pivots at the open, which it had lost on Thursday, and continued higher. After three waves down last week: 2462-2474-2438, with a double bottom at 2438 and an extreme oversold condition. It has now had a quantified reversal to the upside, from SPX 2438 to 2468 thus far. A gap up opening, not as dramatic as this one, kicked off the previous Micro 3 in May. Let’s see how the market handles this one on this busy economic/opex week. Short term support is at the 2456 and 2444 pivots, with resistance at the 2479 and 2525 pivots. Short term momentum ended the day overbought. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend