SHORT TERM: gap up opening, DOW +54
Overnight the Asian markets lost 0.3%. Europe opened lower but gained 0.3%. US index futures were relatively flat overnight, and then began to rise. At 8:30 the trade deficit was reported slightly wider. The market gapped up at the open to SPX 2467, hang around that level until about 10am, then began to pullback. At 10am ISM services were reported higher. Just past 11am the SPX hit 2459, after FED vice chairman Fischer’s resignation, then began to move higher. At 2pm the FED released its Beige book: https://www.federalreserve.gov/monetarypolicy/beigebook201709.htm. Around 3:30 the SPX hit 2470, then dipped too close at 2466.
For the day the SPX/DOW gained 0.30%, and the NDX/NAZ gained 0.30%. Bonds lost 10 ticks, Crude added 50 cents, Gold slid $7, and the USD was higher. Medium term support remains at the 2456 and 2444 pivots, with resistance at the 2479 and 2525 pivots. Tomorrow: the ECB at 7:30, and weekly jobless claims at 8:30.
The market gapped up at the open today, reversing yesterday’s gap down, and nearly opened where the market had gapped down to yesterday: today 2467, yesterday 2469. After the open the market pulled back to SPX 2459, then rallied to 2470. Interesting action. With today’s rally we now have another short-term wave reversal. From SPX 2417 we see the following: 2455-2428-2480-2447-2470? This still can be read either way: corrective/impulsive. It all depends on what occurs next. Short term support is at the 2456 and 2444 pivots, with resistance at the 2479 and 2525 pivots. Short term momentum continued to rise today and nearly hit overbought. Best to your trading!
MEDIUM TERM: inflection point continues
LONG TERM: uptrend