SHORT TERM: market ends mixed after big gap up opening, DOW +60
The market gapped up this morning on overnight buying due to accommodative comments by FED chairman Bernanke. Within the first few minutes the SPX rallied 19 points to 1489. But that was the high as techs came under pressure for most of the day. By 3:00 the SPX traded down to 1471, then bounced higher into the close. Financials were strong today, as all the leaders ended positive. At the close the SPX/DOW gained 0.60%, and the NDX/NAZ lost 0.45%. Bonds closed down 9 ticks, Crude was $2.26 lower, Gold dropped $12.00, and the Euro was lower as well. Support for the SPX remains at 1462 and then 1438, with resistance at 1484 and then 1506. Short term momentum, which was overbought this morning, is now at neutral and heading lower. An interesting three days for the markets. Sharp broad based rally on wednesday, good tech rally but weak financials on thursday, then strong financials but weak techs on friday. And now two days in a row without a 200+ point swing up or down. Certainly the market has responded positively to the comments by the FED, and the activities by the Treasury department. Maybe they finally figured out what the market has been projecting. Best to your weekend!
MEDIUM TERM: correction may have bottomed, awaiting an uptrend confirmation
LONG TERM: bullish