SHORT TERM: gap up opening, DOW +435
For the first three days of the week the Asian markets lost 0.7%, and the European markets gained 0.7%. The SPX started the week at 2665. After a gap down opening on Monday the SPX hit 2624 and then started to rally. Tuesday had a flat opening and the market finished at SPX 2640. Wednesday had a gap up opening, and the SPX hit 2690, a new high for the uptrend, before closing at 2681.
The short term chart we offered over the weekend continues to squiggle along. We’re accepting the SPX 2672 level as a small fifth wave failure, as the DOW made a new high that day, and the market sold off afterwards on Monday. At SPX 2624 it completed a small 4th wave ‘iv’ and now has rallied to a new high at SPX 2690 for a small ‘v’. It currently looks like the market needs a pullback, and then another new high to complete the third wave up from the SPX 2347 low. Then a sizable pullback for wave 4, should lead to one more new high to end the uptrend.
Short term support is at the 2656 and 2632 pivots, with resistance at the 2731 and 2780 pivots. Short term momentum hit quite overbought at today’s high. Best to your trading!
MEDIUM TERM: uptrend 99% probable
LONG TERM: uptrend 80% probable
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