SHORT TERM: stocks close higher in volatile day
The market gapped up this morning on positive Q4 GDP results, but that was the high for the day. Stocks immediately began to pullback when Crude oil started to rally, and steady political confrontational news streamed out of the Senate. Around 2:30, when the SPX/NDX/NAZ were all making new lows for this pullback, the market bottomed for the day and rallied into positive territory at the close. The SPX/DOW rose 0.35%, and the NDX/NAZ was barely 0.05% higher. When the SPX touched 1413, a few points below the 1417 EW pivot, a positive RSI divergence setup up in these same three indices. Should todays selling mark the low for this pullback, it would represent a 35% retracement for the SPX, and a 56% retracement for the NDX. Both of which are quite normal. The market has remained under pressure all week. Tomorrow the Feb Core PCE and the Chicago PMI, along with a number of other economic indicators will be released in the early hours of trading. The volatility is likely to continue. Thus far, the EW support pivot at SPX 1417 has held every pullback. The next important support level is 1404. Bonds closed down about 1/4 point, Crude rallied $2.00 thanks to Iran, Gold retreated $5.00, and the Euro was slightly higher. Posting the hourly charts below. Best to your evening!
MEDIUM TERM: bullish
LONG TERM: bullish.