SHORT TERM: gap up and go Monday, DOW +260
Overnight the Asian markets gained 1.0%. Europe opened higher and gained 1.0% as well. US index futures were much higher overnight, and the market gapped up to SPX 2477 at the open. The market had closed at SPX 2461 on Friday. Around 12:30 the SPX hit 2489 then drifted for the rest of the day, closing at 2488.
For the day the SPX/DOW gained 1.15%, and the NDX/NAZ gained 1.15%. Bonds lost 20 ticks, Crude rose 55 cents, Gold dropped $19, and the USD was higher. Medium term support rises to the 2479 and 2456 pivots, with resistance at the 2525 pivot. No economic reports until Wednesday.
The market gapped up at the open to start the week and the SPX nearly hit its ATH at 2491. Big 28-point rally from Friday close to today’s high. We checked the last two gap up openings, and both produced the high of the week on the gap up day then did nothing for the rest of the week. With industrial production and options expiration on Friday maybe this time will be different. The short term count from the recent SPX 2417 low is starting to look impulsive again: (1) 2455, (2) 2428, (3) 2480-2447-2489 so far. Still looking for new highs in the SPX to seal the breakout. Short term support is at the 2479 and 2456 pivots, with resistance at the 2525 pivot. Short term momentum ended the day extremely overbought. Best to your trading!
MEDIUM TERM: inflection trying to breakout
LONG TERM: uptrend