SHORT TERM: higher open, pullback, then higher again, DOW +94
Overnight the Asian markets gained 0.7%. Europe opened higher and gained 0.9%. US index futures were higher overnight as well, and at 8:30 weekly jobless claims were reported higher. The market opened 5 points above yesterday’s SPX 2727 close, moved to 2737, and then began to pullback. By 10:30 the SPX had hit 2726, then bounced to 2736 before declining to 2723 by 1:30. After that the market rallied into the last hour of trading. At 3:30 the SPX hit 2740, then dipped and bounced into a 2739 close.
For the day the SPX/DOW gained 0.40%, and the NDX/NAZ gained 0.45%. Bonds gained 7 ticks, Crude lost 80 cents, Gold slipped $3, and the USD was higher. Medium term support rises to the 2731 and 2656 pivots, with resistance at the 2780 and 2798 pivots. Tomorrow: monthly payrolls (est. 222k) at 8:30, and wholesale inventories at 10am.
The market opened higher today, hit SPX 2737, then pulled back before hitting 2740 in the last hour of trading. We can now add two small Minute waves to our positive scenario posted on the hourly chart. From the SPX 2533 low: Minor 1: 2754, Minor 2: 2698-2789-2647, Minor 3: 2732-2702-2740 thus far. Another potential three of three situation has arisen. Let’s see if this one sticks. Short term support is at the 2731 and 2656 pivots, with resistance at the 2780 and 2798 pivots. Short term momentum ended the day overbought. Best to your Friday trading!
MEDIUM TERM: uptrend probably underway
LONG TERM: uptrend