SHORT TERM: gap up opening, DOW +165
Overnight the Asian markets lost 0.9%. Europe opened lower and lost 0.1%. US index futures were lower, then higher overnight and at 8:30 jobless claims were reported lower. The market gapped up at the open to SPX 2711, then rallied to 2723 in the opening minutes. Then after a quick pullback to SPX 2709 by 10am, the market rallied to 2731 by noon. At 10am leading indicators were reported higher. After that the market started to pullback again. Heading into the close the SPX hit 2698, then bounced to close at 2704.
For the day the SPX/DOW gained 0.40%, and the NDX/NAZ were mixed. Bonds gained 6 ticks, Crude rose 95 cents, Gold jumped $6, and the USD was lower. Medium term support remains at the 2656 and 2632 pivots, with resistance at the 2731 and 2780 pivots.
The market gapped up at the open as this volatile February continues. While the first two weeks of the month were on the sell side, and last week was on the buy side. This week has been somewhere in between: buy the dips – sell the rips. The market opened higher today, rallied into the afternoon, then headed south. The same pattern every day this week. Thus far from the recent SPX 2533 low: 2754-2707-2748-2698. If the current low does not hold, (+div), there is some Fibonacci support at 2670 (.38.2%), 2656 (pivot) and 2644 (.50.0%). Short term support is at the 2656 and 2632 pivots, with resistance at the 2731 and 2780 pivots. Short term momentum ended with a positive divergence. Best to your trading!
MEDIUM TERM: uptrend probably underway
LONG TERM: uptrend