Wednesday update

SHORT TERM: lower open then new highs, DOW +20

Overnight the Asian markets gained 0.5%. Europe opened higher and gained 0.1%. US index futures were lower overnight, and at 8:15 the ADP was reported lower. The market opened three points below yesterday’s SPX 2535 close, bounced around for a while, and then rallied to new highs. At 10am ISM services was reported at a 12-year high. Around 12:30 the SPX hit 2541, and then began to pullback. The pullback ended around 1:30 at SPX 2535. Then the market bounced into a SPX 2538 close.

For the day the SPX/DOW gained 0.10%, and the NDX/NAZ gained 0.05%. Bonds added 1 tick, Crude dropped 55 cents, Gold rose $3, and the USD was lower. Medium term support remains at the 2525 and 2479 pivots, with resistance at the 2575 pivot. Tomorrow: weekly jobless claims and the trade deficit at 8:30, then factory orders at 10am.

The market opened a few points lower today, rallied to new highs, then had another small pullback. Nothing noteworthy in the pullback department since a week ago Monday, when the SPX hit 2488. The current 53-point rally from that low is now approaching the largest rally since the SPX 2417 low in August (62-points). Quite a steady advance. Short term wave count from SPX 2417 continues to rise: 2455-2428-2541. See yesterday’s update for the third wave subdivisions. Short term support is at the 2525 and 2479 pivots, with resistance at the 2575 pivot. Short term momentum hit extremely overbought at today’s high. Best to your trading!

MEDIUM TERM: uptrend

LONG TERM: uptrend

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

Filed under: Updates