Following Europe’s lead our stock indices gapped up at the open after closing on their lows yesterday. The rally continued until about 11:30 AM and stocks eased off until the 2PM FOMC minutes were released. When the market viewed the report as "continued fear of inflation", stocks sold off to establish their lows for the day by 2:30 PM. After that we rallied into the close with the SPX closing at its highs for the day, while the other three indices lagged a bit. Overall the market rallied about 0.65%.
After yesterdays selling wave, it was good to see the stock indices react to an oversold short term condition with today’s advance. Also, the fact that the EW pivot points held support. Currently, short term momentum is about at neutral which should fuel the rally a bit higher in the morning. I was expecting the FMOC minutes to be more positive in regard to inflation, but the rally continued nonetheless. Still riding out the correction, awaiting the next good buying opportunity. Best to your day!
INTERMEDIATE TERM: downtrend
LONG TERM: bullish