SHORT TERM: market rallies on FED easing possibilities, DOW +63
The market rallied to start the day as the SPX hit 1545 within the first half hour of trading. That was the high for the day. A small pullback followed until about 11:30 when the SPX hit 1536 nearing support. The rest of the day was spent gradually moving higher into the 1541 closing level. For the day the SPX/DOW were +0.40%, and the NDX/NAZ were also +0.40%. Bonds closed about 5 ticks higher, Crude gained another $1.65, Gold rallied $5.00, and the Euro was higher. Support for the SPX remains at 1530, with resistance at 1556 and then 1576. Short term momentum is still overbought despite the small pullback today. Tomorrow the FED starts their two-day FOMC meeting, rumors should be flying. Also tomorrow the Case-Shiller national real estate pricing index will be released, probably won’t be good. Best to your evening!
MEDIUM TERM: bullish
LONG TERM: bullish.