SHORT TERM: market pulls back to support in the SPX/NDX before turning higher.
After a quiet open the market rallied into the 10:00 release of consumer confidence. After it was announced to be much lower than expected the market gradually pulled back into support at SPX 1295. At 2:00 the minutes of the last FOMC meeting were released. It did not paint a rosy picture. The FED is expecting the economy to grow at lower than normal rates over the next 18 months. They also expect inflation to start to reverse its upward trend by early 2007. Therefore, with slow growth and inflation under control, the FEd is unlikely to raise short term rates any time soon. The Bond market rallied on the report, after being down most of the day, to close slightly higher. Stocks followed Bonds and rallied into the close on a sharp spike upwards, typical of a third wave.
During the rally the NAZ/R2K/NYA all made new highs for the uptrend, and the SPX/NAZ/R2K/NYA all closed at a new high for the advance. The NAZ (Nasdaq composite) and the NYA (New York Stock Exchange composite) are the displaying the underlying relative strength of the market as a whole. These two indices contain about 85% of all the listed stocks in the U.S. This market continues to perform very well, expecting the rally to continue.
MEDIUM TERM: all major indices uptrending
LONG TERM: bullish.