SHORT TERM: consolidation day, DOW +9
Overnight the Asian markets gained 0.9%. Europe opened higher and gained 0.2%. US index futures were higher overnight, and the market gapped up to SPX 2732 at the open. The high for the day. Then the market pulled back. At 10am factory orders were reported lower. By 11:30 the market had pulled back to SPX 2711. After that the market started to work its way back. At 1pm the SPX hit 2731, pulled back to 2721 by 2pm, then hit 2731 again just before 3pm. A dip into the close ended the day at SPX 2728.
For the day the SPX/DOW gained 0.15%, and the NDX/NAZ gained 0.50%. Bonds slipped 1 tick, Crude dipped 15 cents, Gold rallied $13, and the USD was lower. Medium term support remains at the 2656 and 2632 pivots, with resistance at the 2731 and 2780 pivots. Tomorrow: ADP at 8:15, trade deficit at 8:30, the Beige book at 2pm, then consumer credit at 3pm.
The market gapped up at the open, but then went into consolidation mode after a two-day/85-point rally. The market pulled back 21-points early. But quickly rallied back near the opening highs in the afternoon. The Friday-Monday rally quantified a wave up from the recent SPX 2647 low. And the count now looks more like the count posted on the SPX hourly chart: Minor 1: 2754, Minor 2: 2687-2789-2647, Minor 3: 2732 thus far. Short term support is at the 2656 and 2632 pivots, with resistance at the 2731 and 2780 pivot. Short term momentum ended the day just below overbought. Best to your trading!
MEDIUM TERM: uptrend probably underway
LONG TERM: uptrend