SHORT TERM: market rally continues as Crude slides further, DOW +30
Overnight the Asian markets were mostly higher, and Europe gained 1.5%. US index futures held steady overnight and into the open when the SPX made its low for the day at 1276. By 10:30 the market had rallied to 1291, a new high from the SPX 1200 low. That was the high for the day, as the pivot at 1287 offered resistance. A pullback followed until 2:00 to 1277, when the beige book was released: http://www.federalreserve.gov/fomc/beigebook/2008/20080723/default.htm. A rally to 1287 by 2:30 faded into the close despite Crude making new lows for the day. Crude has dropped 15% is just eight trading days. At the close the SPX/DOW were +0.35%, and the NDX/NAZ were +1.15%. Bonds lost about 1/4 point, Crude dropped $4.25, Gold slumped $29.00, and the Euro was lower. Support remains at 1261 and then 1240, with resistance at 1287 and then 1316. Short term momentum was way overbought this morning, and near term momentum was overbought as well. Tomorrow existing home sales and the weekly jobs report at 8:30. The SPX hit out 1287 pivot today, it might be time for a pullback to the 1240 level. Best to your trading!
MEDIUM TERM: downtrend bottomed at SPX 1200
LONG TERM: bear market