SHORT TERM: market opens mixed and heads higher
Overnight the Asian markets were mostly higher, with only China’s SSEC declining after making successive new highs all week. Europe came in slightly higher, and the Feb PCE was reported in line with expectations at +0.3%. Stocks opened mixed and started to edge higher. At 10:00 the Chicago PMI posted the largest one month gain in its 39 year history, rising from 47.9% to 61.7%. This could this mean that the auto industry is beginning to turn around. At 12:30 FED chair Bernanke gives a speech at the FED’s Community Affairs unit in DC. Thus far, the SPX continued its rally from yesterdays 1413 lows to hit 1429 this morning, just a couple points shy of the 1431 EW pivot. It will need to crack through this overhead resistance now for the market to move higher. Bonds are over 1/4 point lower and close to support, Crude is 10 cents lower, Gold is 60 cents higher, and the Euro is down. Short term momentum has yet to get overbought, so I’m expecting this rally to continue. End of week, End of month, and End of quarter window dressing appears to be the order of the day, as volume looks to be on the light side. The stock market continues to look and act positive. Expecting this rally from the SPX 1364 lows to turn into a bonafide new uptrend. Overhead resistance is now at 1431 and the recent highs of 1439. Once the market can penetrate both of those levels, SPX 1530 will be the upside target. Best to your trading!
MEDIUM TERM: bullish
LONG TERM: bullish.