Tuesday update

SHORT TERM: gap up opening then drift higher, DOW +93

Overnight the Asian markets gained 0.1%. Europe opened higher and gained 0.3%. US index futures were higher overnight, and at 8:30 the PPI was reported unchanged at 0.0%. The market gapped up at the open to SPX 2436, then ticked up to 2438 in the opening minutes. Then after a pullback to SPX 2431 by 11am, the market moved even higher. Heading into the close the SPX hit 2441 around 3:30 then closed at 2340.

For the day the SPX/DOW gained 0.45%, and the NDX/NAZ gained 0.75%. Bonds gained 1 tick, Crude rose 40 cents, Gold added $1, and the USD was lower. Medium term support remains at the 2428 and 2411 pivots, with resistance at the 2444 and 2456 pivots. Tomorrow: the CPI and retail sales at 8:30, business inventories at 10am, then the FOMC statement/presser at 2pm.

The market gapped up at the open today for the first time in three weeks. The last time the market had a gap up opening it was rallying on its way to new highs at SPX 2409. New highs again? After the opening minutes the market hit SPX 2438, pulled back, and then reached SPX 2441. The DOW made all-time new highs today. The SPX is about 5-points shy, and the NDX/NAZ have retraced 50% of the recent decline. The three times the FED has raised rates during this cycle, a market rally has topped out within +/- 1-day of the event. Will recent history repeat? Short term support remains at the 2428 and 2411 pivots, with resistance at the 2444 and 2456 pivots. Short term momentum hit overbought today. Trade what’s in front of you!

MEDIUM TERM: uptrend

LONG TERM: uptrend

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

Filed under: Updates