SHORT TERM: new bull market highs, DOW +115
Overnight the Asian markets were all lower. Europe opened lower but closed up 0.85%. US index futures were higher overnight, and at 9:00 Case-Shiller reported lower housing prices: 139.27 vs 140.86. The market opened at SPX 1338 and continued to rally. The SPX had closed at 1335 yesterday. At 10:00 Consumer confidence was reported higher: 65.4 vs 63.4, while the FED started its FOMC meeting. The rally continued and by 10:30 the SPX hit a new bull market high. Around noon the SPX hit 1350 and began to pullback. Around 1:30 the SPX neared 1345 and then tried to rally again. Heading into the close the SPX hit 1349 and pulled back to end the day at 1347.
For the day the SPX/DOW were 0.90%, and the NDX/NAZ were +0.65%. Bonds gained 13 ticks, Crude slipped 25 cents, Gold slid $5.00, and the USD was lower. Support for the SPX remains at 1313 and then 1303, with resistance at 1363 and then 1372. Short term momentum moved right back to extremely overbought today after dropping below neutral yesterday. Tomorrow, the FED concludes its two day meeting with an afternoon statement and a press conference with chairman/ceo Bernanke. Also tomorrow Durable goods orders will be reported at 8:30.
Index futures traded higher overnight and this morning’s earnings reports helped the market open higher and push higher throughout the morning. After the rally got going there was little hesitation breaking the bull market high at SPX 1344. A new high was posted at SPX 1350. The next objective for this market, of course, would be the OEW 1363 pivot. This would be a logical area for a Minor wave 1 high and then a 15-20 point Minor wave 2 pullback. Let’s see how this plays out with FOMC day tomorrow and FED speeches into the end of the week. Short term support is now at SPX 1334 and then the 1313/1303 pivots, with resistance at the 1363/1372 pivots. Best to your trading!
MEDIUM TERM: uptrend high SPX 1350
LONG TERM: bull market