SHORT TERM: gap up opening and rally, DOW +197
Overnight the Asian markets gained 0.4%. Europe opened higher and gained 0.4% as well. US index futures were higher overnight, and at 8:30 the CPI was reported higher. The market gapped up to SPX 2707 at the open. It had closed at SPX 2698 yesterday. The rally continued, with small 2-4 point pullbacks, until the SPX hit 2726 at 1pm. The market pulled back to SPX 2714 by 2:30, and then tried to rally again. The market then rallied to SPX 2723 and closed there.
For the day the SPX/DOW gained 0.80%, and the NDX/NAZ gained 0.95%. Bonds rose 5 ticks, Crude added 20 cents, Gold rose $9, and the USD was lower. Medium term support remains at the 2656 and 2632 pivots, with resistance at the 2731 and 2780 pivots. Tomorrow export/import prices at 8:30, then consumer sentiment at 10am.
The market gapped up at the open today for the second time this week. The SPX then cleared the 2717 level noted in recent reports. With today’s rally the triangle becomes the preferred count of the three we have been tracking. Triangle: D wave resistance at the 2731 pivot and around 2750, then a drop below 2600. Double three: b wave resistance at the same levels, then a drop to around 2550. Ending diagonal Int. v: choppy activity higher continues, forming a rising wedge, and completing at new all-time highs. Regardless of the final wave pattern still expecting the SPX to make new all-time highs this year. Short term support is at the 2656 and 2632 pivots, with resistance at the 2731 and 2780 pivots. Short term momentum hit extremely overbought at the highs, then backed off some in the afternoon. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend