SHORT TERM: US market awaits the FED, DOW +10
Overnight the Asian markets gained 1.2%. European markets opened lower but gained 0.2%. US index futures were higher overnight, and at 8:30 Export prices were reported higher (+0.4% vs -0.3%), and Import prices were reported still negative (-0.2% vs -0.4%). The market opened higher at SPX 1437 and rose to the uptrend high at 1439 by 10:00. The market had closed at SPX 1434 yesterday. At ten Wholesale inventories were reported higher: +0.7% vs -0.2%. The market then began to pullback. At 11:00 the SPX hit 1434 and tried to rally again. And again, the rally ended at SPX 1439 and the market began to pullback. Around 3:00 the SPX hit 1433 then bounced into a 1437 close.
For the day the SPX/DOW were +0.15%, and the NDX/NAZ were +0.30%. Bonds lost 13 ticks, Crude slipped 30 cents, Gold was flat, and the USD was lower. Medium term support for the SPX remains at the 1386 and 1372 pivots, with resistnace at the 1440 and 1499 pivots. Tomorrow weekly Jobless claims at 8:30 along with the PPI. Then the FED ends their FOMC meeting with a statement at 12:30, followed by Press conference. At 2:00 the Budget deficit will be announced.
The market opened higher today and twice tried to make new uptrends highs. For the third time in three days the rally stopped at SPX 1439. The Tech stocks were still a bit soft, but AAPL started to rally into the close after making a slightly lower low today … post iPhone 5 release. This market has basically been on ‘pause’ since it made a new uptrend high on monday. A retest of SPX 1429 is still possible as the market heads into, the typically volatile, FOMC day. It should be an interesting day.
Short term support remains at SPX 1422/27 and 1413/16, with resistance at the 1440 pivot and SPX 1463/64. Short term momentum bounced around neutral all day. The short term OEW charts remains positive with the swing level at SPX 1427. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market