Thursday update

SHORT TERM: 4th gap opening in a row, DOW +174

Overnight the Asian markets gained 0.5%. Europe opened lower but gained 0.6% (mostly France). After the close yesterday FED vice chair Fischer gave another speech: https://www.federalreserve.gov/newsevents/speech/fischer20170419a.htm. Overnight the SPX futures were higher. At 8:30 weekly jobless claims were reported higher: 240k v 234k, and the Philly FED was reported lower: 24.0 v 32.8. The market gapped up at the open to SPX 2346, then started to pullback. The SPX had closed at 2338 yesterday. At 10am the SPX hit 2341, and leading indicators were reported higher: 0.3% v 0.6%. The market then started to rally. With two small pullbacks along the way the SPX hit 2361 around 2pm. Then pulled back to close at SPX 2356.

For the day the SPX/DOW gained 0.80%, and the NDX/NAZ gained 0.85%. Bonds lost 10 ticks, Crude slipped 25 cents, Gold added $2, and the USD was higher. Medium term support remains at the 2336 and 2321 pivots, with resistance at the 2385 and 2411 pivots. Tomorrow: existing home sales at 10am and it’s options expiration.

Today the market had a gap opening for the 4th day in a row. The last time this happened was in mid-September, during a complex correction, when the market had five gap openings in a row. The last gap opening then put in the SPX 2180 B wave high, and the correction resumed after that. No change in the short term count: Minute A 2322, Minute B 2379, Minute C underway. And no change on the expected downtrend support levels. What did change today was all the participation in the blog and forum. Which has been fairly quiet for some time. Apparently today’s rally was unexpected. Short term support is at the 2336 and 2321 pivots, with resistance at the 2385 and 2411 pivots. Short term momentum moved from oversold to quite overbought today. Best to your trading!

MEDIUM TERM: downtrend

LONG TERM: uptrend

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

Filed under: Updates