SHORT TERM: market pulls back to end the month.
Stocks opened lower this morning, then tried to rally through mid-afternoon. But the Techs weighed on the market and finally pulled it lower in the last two hours. Overall, April was one the best months in the past three years for the stock market. The SPX gained over 4.3%, and the DOW 5.7%. The NDX gained 5.4% and the NAZ 4.3%, a good month for the Techs, but not a stellar one. Bonds had a big day gaining nearly one point, Crude was 85 cents lower, Gold lost $1.80, and the Euro gained. The short term wave count is a bit perplexing at this point. The DOW and NDX seem to be doing fine. But the SPX and NAZ, a strange pairing, are looking a bit sloppy with today’s late day selling. I will need to take a closer look at the short term structures before updating the charts. Worse case scenario at this point, is that Minute wave three was completed at the recent highs, and Minute wave four is underway. This changes nothing for our medium term target of SPX 1530, only the short term structure has been effected. See SPX daily chart below. I’ll try to get the short tem charts updated later, after I have a chance to review all the indices. Enjoy your evening!
MEDIUM TERM: bullish, targeting SPX 1530
LONG TERM: bullish.