SHORT TERM: markets have stabilzed
The Asian markets were all mostly up 1.5% and Europe came in about 1.25% higher too. The rallied continued worldwide. This added to our market, as we had another gap up opening. After two weeks of an unstable "sell everything" investment attitude, the markets appear to have stabilzed. This morning’s core CPI 2.1% report, slightly above the FED’s target, did not send the markets into a tailspin. Therefore, I would expect the technicals to be of some use here in the coming days and weeks. Short term momentum is getting overbought, but the daily oversold condition remains.
The EW pivots continue to remain my main focus. If this rally is to continue these pivots need to be scaled higher, one by one, using each pivot as support as the market gains strength. Here are the pivots for the major indices: NAZ 2177..2190..2240, NDX 1539..1571..1611, SPX 1254..1268..1281 and DOW 11,039..11,261. Thus far this morning: the NAZ continues to hold above 2190, the DOW is running into resistance at 11,261 and the SPX/NDX continue to hold their SPX 1268 and NDX 1571 levels. Remember, I believe this is an oversold rally against the overall trend which is still down. I would be really surprised if a two week correction would be enough to correct a year long advance. Best to your weekend!
INTERMEDIATE TERM: downtrend
LONG TERM: bullish