SHORT TERM: gap up opening and rally, DOW +161
Overnight the Asian markets gained 1.0%. Europe opened lower but gained 0.5%. US index futures were higher overnight, and the market gapped up at the open to SPX 2592. The SPX had closed at 2582 yesterday. After the open the market continued to rally until it hit SPX 2600 at 11am. At 10am existing home sales were reported higher. Then the market went into a 2 point trading range until the SPX hit 2601 at 2pm. Then a 3 point trading range followed into the close ending the day at SPX 2599.
For the day the SPX/DOW gained 0.60%, and the NDX/NAZ gained 1.10%. Bonds added 1 tick, Crude rose 55 cents, Gold moved up $2, and the USD was lower. Medium term support rises to the 2594 and 2575 pivots, with resistance at the 2632 pivot. Tomorrow: weekly jobless claims and durable goods at 8:30, consumer sentiment at 10am, then the FOMC minutes at 2pm.
The market gapped up at the open today, jumping over the recent SPX 2590 high, then rallying past the SPX 2597 all-time high too. We can now count three waves up from the recent Minute iv low at SPX 2557: 2590-2578-2601. Again, too early to tell what degree these three waves are. But the market is already at all-time highs and appears heading to the OEW 2632 pivot range next. Short term support is now at the 2594 and 2575 pivots with resistance at the 2632 pivot. Short term momentum hit extremely overbought at today’s high. Best to your holiday trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend