SHORT TERM: new uptrend highs, DOW +21
Overnight the Asian markets gained 1.7%. Europe opened lower but gained 0.7%. US index futures were higher overnight as well. At 9:00 FED chairman Bernanke’s speech: http://www.federalreserve.gov/newsevents/speech/bernanke20120806a.htm. The market opened higher at SPX 1394 and continued to rally. The SPX had closed at 1391 on friday. At 10:30 the SPX hit 1400 for the first time in three months. A small 3 point pullback followed to SPX 1397 by 11:30. Then the market tried to rally again. At 1:30 again SPX 1400 offered resistance, then the market pulled back to close at 1394.
For the day the SPX/DOW were +0.20%, and the NDX/NAZ were +0.70%. Bonds gained 7 ticks, Crude added 70 cents, Gold rallied $7, and the USD was lower. Medium term support remains at the 1386 and 1372 pivots, with resistance at the 1440 and 1499 pivots. Short term momentum ended the day at neutral. Tomorrow, a speech from FED chairman Bernanke at 2:30, then Consumer credit at 3:00.
The market opened the week higher, rallied to SPX 1400, a new uptrend high, then pulled back to where it opened at SPX 1394. This is still a minor pullback. From the recent low at SPX 1355 the market has rallied 45 points without one notable pullback. The previous rally, SPX 1329-1390, had two notable pullbacks of 12 and 11 points. And, the one prior to that, SPX 1310-1375, had two notable pullbacks as well: 21 and 11 points. With the market currently having a difficult time clearing the SPX 1402/03 resistance area possibly a pullback is in order.
Short term support is at the 1386 and 1372 pivots, with resistance at SPX 1402/03 and 1413/15. Short term momentum is declining from quite overbought. The short term OEW charts remain positive with the swing point now at SPX 1379. Best to your trading!
MEDIUM TERM: new uptrend high
LONG TERM: bull market