Friday update

SHORT TERM: after good NFP market moves higher, DOW +55

Overnight Asian markets lost 0.5%. Europe open higher, ahead of Sunday’s French vote, and gained 0.8%. US index futures were flat, then higher overnight. At 8:30 monthly payrolls were reported higher: 211k v 79k, and unemployment declined to 4.4%. The market opened 5 points above yesterday’s SPX 2390 close. It then pulled back to SPX 2389 by 10:30, before rallying into the afternoon. At 11:30 FED vice chair Fischer: https://www.federalreserve.gov/newsevents/speech/fischer20170505a.htm. Then at 1:30 chair Yellen: https://www.federalreserve.gov/newsevents/speech/yellen20170505a.htm. At 3pm consumer credit was reported higher: $16.4b v $15.0b. Heading into the close the SPX hit 2399 and closed there.

For the day the SPX/DOW gained 0.35%, and the NDX/NAZ gained 0.40%. Bonds added 3 ticks, Crude rose 85 cents, Gold ticked up $2, and the USD was lower. Medium term support remains at the 2385 and 2336 pivots, with resistance at the 2411 and 2428 pivots. Today the WLEI was reported lower: 55.4% v 55.9%, and the Q2 GDP estimate was reported lower: 4.2% v 4.3%.

The market opened higher today, pulled back to slightly negative, traded in a range for 2 hours, then rallied to SPX 2399. Its highest level since SPX 2401 on March 1st. After several successful tests of the low SPX 2380’s it looks like the market may be readying to breakout. French elections on Sunday may be the nay or yea catalyst. As noted earlier in the week: need to reach or exceed SPX 2398 to get the short term waves looking impulsive again. SPX 2399 should do it. A more detailed update in the weekend report. Kentucky Derby Saturday: Irish War Cry looks primed. Best to your weekend!

MEDIUM TERM: uptrend

LONG TERM: uptrend

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

Filed under: Updates