SHORT TERM: gap up opening, DOW +241
Overnight the Asian markets gained 1.1%. Europe opened higher and gained 2.6%. US index futures were higher overnight. At 8:30 weekly jobless claims were reported higher, and the trade deficit increased. The market gapped up at the open to SPX 2659. It had closed at SPX 2645 yesterday. In the opening minutes it ticked up to SPX 2663, then pulled back to 2652 by 10am. After that a bigger rally to SPX 2672 by 11:30. Followed by an even larger pullback to SPX 2650. Then after rally back to SPX 2672 just past 3pm, pullback to 2658 at 3:30, the market closed at 2663.
For the day the SPX/DOW gained 0.85%, and the NDX/NAZ gained 0.50%. Bonds lost 9 ticks, Crude added 25 cents, Gold dropped $7, and the USD was higher. Medium term support is now at the 2656 and 2632 pivots, with resistance at the 2731 and 2780 pivots. Tomorrow: monthly payrolls (est. 170K) at 8:30, FED chair Powell speech at 1:30, then consumer credit at 3pm.
After yesterday’s 40-point gap down opening, the market impulsed higher for the rest of the day, reversing 76-points, to finish the day over 30-points higher. Today the market gapped up at the opening, continuing that rally, hit a high of SPX 2672 early, then went into a trading range for the rest of the day. Thus far the SPX looks like it has impulsed quite nicely from Monday’s 2554 low to today’s 2672 high. And, we can count five completed waves down for wave C of the correction, to end a 3-3-5 flat at SPX 2554. As a result we posted a tentative green Int. wave iv label at that low. Best to your trading!
MEDIUM TERM: downtrend may have bottomed
LONG TERM: uptrend