Friday update

SHORT TERM: gap up opening, DOW +30

Overnight the Asian markets gained 0.6%. Europe opened higher but lost 0.1%. US index futures were higher overnight, and at 8:30 durable goods were reported lower. The market gapped up to SPX 2448 at the open and continued to rally. The SPX had closed at 2439 yesterday. By 10am the SPX hit 2454, and then started to pullback. Also at 10am: https://www.federalreserve.gov/newsevents/speech/yellen20170825a.htm. The market then pulled back to SPX 2442 by 11:30. After another rally to SPX 2450 the market pulled back to close at 2443.

For the day the SPX/DOW gained 0.15%, and the NDX/NAZ lost 0.15%. Bonds gained 6 ticks, Crude rose 35 cents, Gold added $4, and the USD was lower. Medium term support remains at the 2428 and 2411 pivots, with resistance at the 2444 and 2456 pivots. Today the Q3 GDP estimate was lower to 3.4%.

The market gapped up at the opening today for the second time this week. Tuesday’s gap up opening rallied to SPX 2455, today’s rallied to 2454. The 2444/2456 pivot zone continues to act as resistance. Today’s rally as a bit unexpected, but did little to change the medium term and short term view. The market seemed to rally in anticipation of Yellen’s speech, and then sold off in disappointment. Best to your weekend!

MEDIUM TERM: downtrend probably underway

LONG TERM: uptrend

CHARTS: https://stockcharts.com/public/1269446/tenpp

Filed under: Updates