SHORT TERM: IBM powers DOW, DOW+160
Overnight the Asian markets were mixed. Europe opened higher and gained 0.4%. US index futures were higher overnight, and at 8:30 both housing starts and building permits were reported lower. The market opened at SPX 2564, a new high, and naturally following recent patterns, began to pullback. Around 11:30 the SPX had retested 2560 and tried to rally. At 2pm the FED’s Beige book was released: https://www.federalreserve.gov/monetarypolicy/beigebook201710.htm. The market hit SPX 2564 just after 2pm then began to ease back. The market then pulled back to SPX 2561 and closed there.
For the day the SPX/DOW gained 0.40%, and the NDX/NAZ were mixed. Bonds lost 10 ticks, Crude rose 10 cents, Gold dropped $5, and the USD was lower. Medium term support remains at the 2525 and 2479 pivots, with resistance at the 2575 and 2594 pivots. Tomorrow: jobless claims and the Philly FED at 8:30, then leading indicators at 10am.
The market opened at record highs today, helped by IBM powering the DOW higher. Then as has been the routine of late started to pullback. Higher opens get pullbacks, lower opens get rallies. The pullback was only 4-points. Then after hitting the high just after the Beige book the market pulled back into the close. No change on the short term count. Except that this last wave has now reached SPX 2564. The grind higher continues. Short term support is at the 2525 and 2479 pivots, with resistance at the 2575 and 2594 pivots. Short term momentum continues to display a negative divergence. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend