SHORT TERM: gap up opening volatility continues, DOW +295
Overnight the Asian markets lost 1.5%. Europe opened lower but gained 0.2%. US index futures were higher overnight. At 8:30 weekly jobless claims were reported lower, and personal income/spending higher. The market opened at SPX 2624, then pulled back to 2610 by 10am. The SPX had closed at 2605 yesterday. At 9:45 the Chicago PMI was reported lower, and at 10am consumer sentiment was reported lower. The market then rallied to SPX 2641 by 11am. Then after a pullback to 2627 by noon, the market rallied to 2659 just past 3pm. Then to end the week, the expected afternoon pullback dropped the market to SPX 2642 where it closed.
For the day the SPX/DOW gained 1.35%, and the NDX/NAZ gained 1.75%. Bonds added 5 ticks, Crude rose 55 cents, Gold was flat, and the USD was flat. Medium term support rises to the 2632 and 2594 pivots, with resistance at the 2656 and 2731 pivots. Tomorrow is a national holiday.
Volatility continued this week. Every rally sold, every selloff bought. In fact, after hitting a high for the day just past 3pm (+54), the market was still being sold in the futures market after the close. For weeks the buying and selling has almost looked programmed. Not much to add on the short term count. Lots of choppiness this week with a market not quite ready to go anywhere other than sideways. Best to your extended weekend!
MEDIUM TERM: downtrend
LONG TERM: uptrend