SHORT TERM: stocks continue their pullback as indices close lower
The market gapped down at the open today on a weaker than expected Durables goods report. Not even the FED chairman’s speech before the Senate this morning helped, as the market sold off further on his comments. However, about 15 minutes after that selling, the market bottomed for the day, as the SPX touched 1414. The SPX then rallied to 1426 by 12:30, when the NDX actually turned positive on the day. But the rally could not sustain itself, and stocks pulled back again. The short term EW pivot point at 1417 held support during todays pullback, and the SPX closed there too. Now it will be important for the market to generate some sort of decent rally from today’s oversold levels. Bonds retreated during the day losing about 1/8 point, Crude gained $1.00, Gold gained $4.00, and the Euro reversed and turned lower. At the close the SPX/DOW were 0.85% lower, and the NDX/NAZ lost 0.95%. Tomorrow before the open the revised Q4 GDP will be announced, and at 10:00 the FED’s Kohn will speak before the Senate on Industrial loan companies. Currently the short term pivots display support at SPX 1417 and 1404, with overhead resistance at 1431. The midday rally today failed to break through the 1431 resistance level and pulled back to support again at 1417. Tomorrow’s another day. Best to your evening!
MEDIUM TERM: bullish
LONG TERM: bullish.