SHORT TERM: Crude oil rallies market closes mixed, DOW +12
Overnight all the Asian markets were lower, and Europe opened lower then closing -0.65%. US index futures were pressured overnight, then at 8:30 the weekly unemployment claims were reported to have improved a bit: 432K vs. 445K. The market gapped down at the opening, hitting 1265 within the opening minutes. That was the low for the day. At 10:00 the Philly FED displayed some improvement, but still contracting. Also, Leading Indicators rolled over to -0.7%, and have now declined 1.8% in the past six months. The market continued to rally to 1273 by 10:30, pulled back to 1266 by 11:00, and then rallied again. By 3:00 the SPX hit 1281, the highest it has been since monday. There certainly seems to be lots of support in the 1260′s area. At the close the SPX/DOW were +0.20%, and the NDX/NAZ were -0.35%. Bonds lost about ten ticks, Crude stormed ahead $6.00, Gold rallied $25.50, and the Euro was higher. Short term momentum was getting overbought nearing the close, and the near term indicators are rising as well. Tomorrow, only a 10:00 speech from FED chairman Bernanke is on the agenda. Removed yesterdays tentative 1-2-3-4 count from the SPX 1313, as wave 4 overlapped wave 1 on todays rally. Still waiting for a confirm to the downside in the SPX, which would make SPX 1313 the high for the uptrend. The DOW does look like it has already turned over, and is waiting on the SPX. Nothing seriously confirmed by OEW yet. Best to your trading!
MEDIUM TERM: uptrend high SPX 1313
LONG TERM: bear market