SHORT TERM: flat open then rally resumes, DOW +27
Overnight the Asian markets gained 0.9%. Europe opened higher and gained 0.5%. US index futures were relatively flat overnight. At 8:15 the ADP was reported higher, and at 8:30 Q2 GDP was raised to 3.0%. The market opened unchanged at SPX 2446, dipped to the 2444 pivot, then resumed yesterday’s rally. By 2:30 the SPX hit 2460. Then after a pullback to SPX 2454 by 3:30 the market closed at 2458.
For the day the SPX/DOW gained 0.35%, and the NDX/NAZ gained 1.15%. Bonds lost 4 ticks, Crude slid 45 cents, Gold slipped $1, and the USD was higher. Medium term support rises to the 2456 and 2444 pivots, with resistance at the 2479 and 2525 pivots. Tomorrow: jobless claims, personal income/spending, and the CPI at 8:30. Then the Chicago PMI at 9:45, and pending home sales at 10am.
The market opened flat today, but quickly picked up where it left off yesterday with the rally from SPX 2428. After retesting the 2444 pivot right after the open, the market rallied to above the 2456 pivot in the afternoon. From yesterday’s gap down opening at SPX 2428 the market has now had its best rally, with only one 5-point pullback, since July. This puts the alternate count, posted on the hourly chart, back in play. The next two days could prove to be quite important, short and medium term. Short term support is at the 2456 and 2444 pivots, with resistance at the 2479 and 2525 pivots. Short term momentum hit extremely overbought at today’s high. Best to your trading!
MEDIUM TERM: potential inflection point
LONG TERM: uptrend