SHORT TERM: OEW 1680 pivot range reached, DOW -19
Saturday FED chairman Bernanke gave the following speech: http://www.federalreserve.gov/newsevents/speech/bernanke20130518a.htm. Overnight Asian markets gained 1.0%. Europe opened higher and gained 0.7%. US index futures were relatively flat overnight, and the market opened one point under Friday’s SPX 1667 record close. In the opening minutes the SPX hit 1668, then pulled back to 1665 before starting to rally again around 10:00. Around noon the SPX entered the OEW 1680 pivot range when it hit 1673. Then it started to pullback. The pullback hit SPX 1664 at 2:00, the market then bounced to 1668 by 3:00, before dipping to close at 1666.
For the day the SPX/DOW were -0.10%, and the NDX/NAZ were -0.15%. Bonds lost 2 ticks, Crude gained 60 cents, Gold rallied $40, and the USD was lower. Medium term support remains at the 1628 and 1614 pivots, with resistance at the 1680 and 1699 pivots. Nothing on the economic agenda tomorrow.
The market opened about flat today, bounced around a bit, and then made all time new highs again. At the high, SPX 1673, the SPX entered the OEW 1680 pivot range (1673-1687). Then it had a notable pullback to SPX 1664. While the market did clear the resistance at SPX 1666-1667. It has now run into another series of resistance levels within the 1680 pivot range. Todays’ pullback does look like it could be the start of Minute iv of Minor 5. A decline into the SPX low 1660′s could get it started. Then a further decline below SPX 1650 would all but confirm it.
Short term support is at the 1628 and 1614 pivots, with resistance at the SPX 1658-1667 range and the 1680 pivot. At today’s highs momentum displayed a negative divergence and momentum dropped to neutral. The short term OEW charts remain positive with the reversal level now SPX 1649. Best to your trading!
MEDIUM TERM: new uptrend high SPX 1673
LONG TERM: bull market