SHORT TERM: gap up opening then new ATHs, DOW +56
Overnight the Asian markets lost 0.4%. Europe opened higher and gained 0.4%. US index futures were higher overnight, and at 8:30 durable goods orders were reported higher. The market gapped up at the open to SPX 2506, hit 2508 in the opening minutes, then started to pullback. The SPX had closed at 2497 yesterday. At 10am pending home sales were reported lower. At 11am the SPX had closed the gap and hit 2496. And then started to rally. The rally continued into the afternoon as the SPX hit 2512, a new high. Then the market pulled back to close at SPX 2507.
For the day the SPX/DOW gained 0.30%, and the NDX/NAZ gained 1.05%. Bonds lost 17 ticks, Crude rose 20 cents, Gold dropped $12, and the USD was higher. Medium term support remains at the 2479 and 2456 pivots, with resistance at the 2525 pivot. T0morrow: Q2 GDP (est. +3.2%), and weekly jobless claims.
The market gapped up at the open today for the first time in over two weeks. The last gap up opening eventually led to new highs at SPX 2509. This gap up opening made new highs the same day at SPX 2512. With today’s activity we can now count three nearly completed waves up from the Micro 2 SPX 2417 low: 2455-2428-2512. Refer to yesterday’s update for the subdivisions of wave 3. When this rally does conclude we would look for about another 20 point pullback for wave 4, then a rally to the 2525 pivot range for wave 5. Short term support is at the 2479 and 2456 pivots, with resistance at the 2525 pivot. Short term momentum ended just below overbought. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend