SHORT TERM: gap up opening then lower, DOW +71
Overnight the Asian markets gained 0.1%. Europe opened higher, the ECB started EQE tapering, and the markets gained 1.1%. US index futures were higher overnight, and at 8:30 weekly jobless claims were reported higher. The market gapped up at the open to SPX 2564, ticked up to 2566 in the opening minutes, then pulled back to 2560 by 10:30. The market had closed at SPX 2557 yesterday. At 10am pending home sales were reported unchanged. The market then rallied to SPX 2567 by 11am. Then spent the res of the day drifting lower to close at SPX 2560.
For the day the SPX/DOW gained 0.20%, and the NDX/NAZ lost 0.20%. Bonds dropped 4 ticks, Crude rose 50 cents, Gold slid $10, and the USD was higher. Medium term support remains at the 2525 and 2479 pivots, with resistance at the 2575 and 2594 pivots. Tomorrow: Q3 GDP (est. +2.7%) at 8:30, then consumer sentiment at 10am.
The market gapped up at the open today, rallied up to SPX 2567, then drifted lower for the rest of the day. The last time the market gapped up at the open was Friday. When the market was on its way to Monday’s all-time high at SPX 2578. This adds some technical support to the idea that a Micro wave 5 rally is underway from yesterday’s SPX 2544 low. Should this be correct we would expect the market to reach the OEW 2594 pivot in the coming days to complete Minute wave iii of this Minor wave 5 uptrend. Just taking it one wave it a time. Short term support is at SPX 2544 and the 2525 pivot, with resistance at the 2575 and 2594 pivots. Short term momentum nearly reached overbought today during the morning rally, then ended below neutral. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend