SHORT TERM: It’s FED day and the market is rallying, SPX 1380
Overnight the Asian markets were mixed, and Europe came in about 0.25% higher. Our stock indices opened quietly, but soon started rising as the Techs began to gain momentum again. The DOW/SPX/TRAN/NYA have already posted new uptrend highs ahead of the FOMC. We added two new charts to the CHART LINK (right side of sight). Titanium Materials will be covered by Dionys C., and Level Three will be covered by Levi B. Two more graduates of the OEW group putting EW to work profitably. They look like they both have excellent potential into 2007.
Technically, things look the same as they have been for a few days now. The SPX/DOW continue to eke out higher highs everyday, and the NDX/NAZ remains in a trading range. Starting to see some negative RSI divergences on the hourly charts, and a small negative NDX/SPX divergence on the daily charts. I’d say it’s time for a pullback, but I’ve been saying that for many days now. Maybe after the meeting, and the press release at 2:15. Best to your day!
MEDIUM TERM: bullish … most major indices uptrending
LONG TERM: bullish