SHORT TERM: stocks close lower ahead of Bernanke’s speech.
Stocks opened lower this morning and continued to slide lower after Consumer confidence was report to have dropped, and the FED reported that subprime mortgages will continue to weigh on the real estate market for another one to two years. The selling subsided at around 11:30 when the SPX hit 1426 and the market started to rally. At 3:30 the rally hit 1431, our short term EW pivot point, and eased back into the close. The final figures displayed the SPX/DOW down 0.60%, and the NDX/NAZ was 0.70% lower. Bonds closed down about 1/4 point, Crude was 10 cents higher, Gold lost $1.00 and the Euro was higher. A pullback to the first impulse wave off the SPX 1364 lows, appears to be underway. Short term momentum is not yet oversold, therefore a retest of SPX 1423 or the EW pivot 1417 is likely, before the advance resumes. Tomorrow at 9:30 FED chairman Bernanke’s speech will be released as he appears before the Senate. Before the open at 8:30, the Feb Durable goods orders report will be released. After these two events the market is on its own for the rest of the day. Posting the customary SPX 15min chart and the longer term SPX60min chart, so you see how the market has traded in the past several months. Best to your evening!
MEDIUM TERM: bullish
LONG TERM: bullish.