SHORT TERM: gap up opening, DOW +545
For the first three days of the week Asian markets lost 0.8%, and European markets gained 0.5%. US elections ended in a split decision. The Democrats took control of the House, and the Republicans maintained control of the Senate. The market anticipated and obviously liked the result. After last Friday’s pullback low to SPX 2700 the market has soared. It closed at SPX 2723 on Friday, SPX 2738 on Monday, SPX 2755 on Tuesday, and SPX 2814 on Wednesday after hitting 2815. Quite a rally in just a few days.
Out short term count remains the same. From the Int. a low at SPX 2604 in late October, the market has rallied in a zigzag to SPX 2757. Pulled back to SPX 2700. And has now rallied to SPX 2815. Our initial resistance levels for this entire advance were: 2773, 2812, and possibly a little bump over the mid-October 2817 high. With the first two already accomplished the third appears to be next. There is also the possibility of this C wave equaling the A wave (2604-2757), which would occur at SPX 2853. Between these Fibonacci levels, and the OEW pivots, this rally should run into resistance in the coming days. Short term support is at the 2798 and 2780 pivots, with resistance at the 2835 and 2858 pivots. Short term momentum ended the day extremely overbought. Best to your trading!
MEDIUM TERM: potential uptrend
LONG TERM: probable downtrend