SHORT TERM: market gains in a volatile session, DOW +215
The market opened higher this morning on overnight buying hitting 1420. But was quickly sold off by the fade the gap up traders, and moved to about unchanged on the day at 1407, just a bit past 10:00. Another rally followed, albeit a choppy one, until 1:30 when the market made new highs for the day at 1428. Then another selloff occurred back down to 1410 by 2:30. But the day wasn’t done. The SPX 1410 pivot held support, and the market rallied into the close making a new high for the day at 1429. At the close the SPX/DOW were +1.60%, and the NDX/NAZ were +1.90%. Bonds gave back most of yesterday’s gains down nearly 1 1/4 points, Crude lost $3.20, Gold dropped $15.20, and the Euro was lower. With the SPX closing at 1428, support again is at 1410 and then 1383, with overhead resistance of 1438 and 1462. Short term momentum was oversold this morning, but is now rising and just past neutral. Tomorrow at 8:00 the FED’s Kohn give a speech in NYC, and the FED’s beige book is released at 2:00. Also, Oct. durable goods and existing homes sales will be released in the morning. Volatility is likely to continue. Best to your evening!
MEDIUM TERM: correction, expecting a SPX 1364 retest
LONG TERM: bullish