SHORT TERM: gap up opening, pullback, then higher highs: DOW +307
Overnight the Asian markets gained 1.3%. Europe opened higher and gained 0.5%. US index futures were higher overnight. At 8:30 jobless claims were reported higher, the PPI higher, the Philly FED higher, plus the NY FED lower and industrial production lower. the market gapped up to SPX 2718 at the open, then pulled back to 2690 by 11am. The market had closed at SPX 2698 yesterday. At 10am the NAHB was reported unchanged. After the low the market rallied throughout the day. Heading into the close the SPX hit 2731 and ended the day there.
For the day the SPX/DOW gained 1.20%, and the NDX/NAZ gained 1.60%. Bonds added 1 tick, Crude rose 90 cents, Gold ticked up $1, and the USD was lower. Medium term support remains at the 2656 and 2632 pivots, with resistance at the 2731 and 2780 pivots. Tomorrow: options expiration, housing starts, building permits and export/import prices; then consumer sentiment at 10am.
Yesterday the market had a gap down opening (2649) on rising inflation numbers. But quickly recovered to close the gap within the first hour of trading. Then the SPX hit 2702 in the afternoon. Today the market gapped up at the open, hit SPX 2718, then pulled back to 2690 by 11am. After that the market made higher highs in the afternoon and closed at SPX 2731. The market has now rallied nearly 200 SPX points from the recent 2533 downtrend low. Positive divergences setup on many timeframes at the low, and the market continues to act like it should when uptrending again. With the market closing at the 2731 pivot, the next objective would be the 2780 pivot. Short term support is at the 2656 and 2632 pivots, with resistance at the 2731 and 2780 pivots. Short term momentum ended the day with a negative divergence. Best to your Opex trading!
MEDIUM TERM: new uptrend?
LONG TERM: uptrend