SHORT TERM: gap down opening then recovery, DOW -10
Overnight the Asian markets gained 0.3%. Europe opened lower and lost 0.7%. US index futures were lower overnight, and at 8:30 weekly Jobless claims were reported lower: 341K vs 366K. Also, last night the FED released governor Tarullo’s senate testimony: http://www.federalreserve.gov/newsevents/testimony/tarullo20130214a.htm. The market gapped down at the open to SPX 1515, then dipped to 1514 before starting to rally. The SPX had closed at 1520 yesterday. For the rest of the day the market continued to gradually move higher, with only two point pullbacks. At 3:30 the SPX hit 1523, then pulled back to lcose at 1521.
For the day the SPX/DOW were mixed, and the NDX/NAZ were mixed. Bonds gained 14 ticks, Crude added 35 cents, Gold dropped $8, and the USD was higher. Medium term support remains at the 1499 and 1440 pivots, with resistance at the 1523 and 1552 pivots. Tomorrow, options expiration friday: the NY FED at 8:30, Industrial production at 9:15, then Consumer sentiment at 10:00.
The market gapped down at the open today, for the first time since a week ago monday, then bounced right back with limited upside resistance. After yesterday’s SPX 1525 high the market pulled back 11 points, and then found support at the previous short term highs: 1514/1515. Did the market just complete a Micro 1-2 from SPX 1498, favoring the alternate DOW count? Or, a Minute A and now B favoring the SPX count? Tough call.
Short term support remains at the 1499 pivot and SPX 1471/75, with resistance at the 1523 and 1552 pivots. Short term momentum rose above neutral today. The short term OEW charts remain positive with the reversal level now SPX 1515. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market