SHORT TERM: gap up and go kind of day, DOW +239
Overnight the Asian markets ended mixed. Europe opened lower but gained 0.6% on the day. US index futures were higher. At 8:30 weekly jobless claims reached a 50-year low and durable goods orders were higher. The market opened at SPX 2654 and continued to rise. The SPX had closed at 2639 yesterday. By 11am the SPX hit 2664. Then after a pullback to SPX 2654 again by 11:30 the market moved even higher. At 3pm the SPX hit 2676, then pulled back to close at 2667.
For the day the SPX/DOW gained 1.00%, and the NDX/NAZ gained 1.85%. Bonds gained 8 ticks, Crude added 15 cents, Gold dropped $5, and the USD was higher. Medium term support rises back to the 2656 and 2632 pivots., with resistance at the 2731 and 2780 pivots. Tomorrow: Q1 GDP at 8:30 (est. 2.0%), and consumer sentiment at 10am.
The market gapped up at the open today for the second time this week. Oddly enough, even without any gap down openings, the market is still down for the week. After dropping from SPX 2684 to 2613 by Wednesday, the market rallied back to 2676 today. Has anyone said this is bi-polar activity yet? Wildly swinging days/weeks, going on for three months, all within a 300-point range. Triangle, double-three, still looks like corrective activity. Short term support rises back to the 2656 and 2632 pivots., with resistance at the 2731 and 2780 pivots. Short term momentum ends the day just below overbought. Best to your GDP trading!
MEDIUM TERM: downtrend
LONG TERM: uptrend