SHORT TERM: higher open rally continues, DOW +56
Overnight the Asian markets gained 0.2%. Europe opened higher and gained 0.6%. US index futures were higher overnight. At 8:30 personal income/spending were reported higher, as was the CPI, and jobless claims were reported slightly higher. The market opened 6-points above yesterday’s SPX 2458 close, and continued to rally. At 9:45 the Chicago PMI was reported unchanged, and at 10am pending home sales were reported lower. Around 10:30 the SPX hit 2470, pulled back to 2464 by 11:30, then moved higher again. In the last hour of trading the SPX hit 2475, then dipped to close at 2472.
For the day the SPX/DOW gained 0.40%, and the NDX/NAZ gained 0.95%. Bonds added 6 ticks, Crude rallied $1.15, Gold rose $14, and the USD was lower. Medium term support remains at the 2456 and 2444 pivots, with resistance at the 2479 and 2525 pivots. Tomorrow: monthly payrolls (est. 170K) at 8:30; then ISM, construction spending, consumer sentiment and auto sales at 10am.
Since Tuesday morning’s gap down SPX 2428 opening low the market has now rallied 47-points with only two 6-point pullbacks along the way. The market’s best rally in over a month. The NDX/NAZ are +2.5% for the week, the TRAN/R2K +2.0%, SOX +3.0%, and Biotech +8.0%. Does this broad/steady participation suggest an SPX hourly chart third wave? Despite lots of short-term counts floating around, the market currently appears to be on cruise control. Short term support is at the 2456 and 2444 pivots, with resistance at the 2479 and 2525 pivots. Short term momentum ended the day quite overbought. Best to you NFP trading!
MEDIUM TERM: market inflection point
LONG TERM: uptrend