SHORT TERM: seventh straight gap opening, DOW +37
Overnight the Asian markets gained 0.3%. Europe opened higher but lost 0.8%. US index futures were lower overnight, and at 8:30 jobless claims were reported slightly lower. The market gapped down at the open to SPX 2814, then rallied to 2825 by 10am. At 10am construction spending was reported higher, but ISM was reported lower. The market then pulled back to SPX 2818 by 10:30, before rallying to 2836 by 1pm. The market then dropped to SPX 2813 by 3:30, before bouncing to close at 2822.
For the day the SPX/DOW were mixed, and the NDX/NAZ lost 0.50%. Bonds slid 15 ticks, Crude rose $1.35, Gold added $4, and the USD was lower. Medium term support remains at the 2798 and 2780 pivots, with resistance at the 2835 and 2858 pivots. Tomorrow: monthly payrolls at 8:30 (est. 171k), then consumer sentiment and factory orders at 10am.
The market gapped down at the open for the third time this week, missed yesterday’s low by one point (2813), and then rallied to SPX 2836 in early afternoon. After that the market headed south again, hitting yesterday’s low in the last hour of trading. Double bottom? Since the week began every rally to the 2835 pivot has been sold. We now have five waves up from the SPX 2557 Minute iv low. But the last wave is kind of lopsided: 2590-2578-2658-2606-2873. This suggests the count posted on the hourly chart may be correct. And the five waves will end up as nine waves up before the uptrend ends. Short term support is at the 2798 and 2780 pivots, with resistance at the 2835 and 2858 pivots. Short term momentum ended the day below neutral. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend