SHORT TERM: market rally continues, DOW +97
Overnight the Asian markets were mixed, and Europe closed up 1.35%. US stocks opened much like yesterday, after the Dec. durable goods orders were reported much higher than expected: +5.2%. A higher open, that was immediately sold off until 10:00, by 11:30 the SPX hit 1362, pulled back, and then by 3:00 hit 1365, closing at 1362. For the day the SPX/DOW gained 0.70%, and the NDX/NAZ added 0.25%. Bonds lost over 3/4 point, Crude gained 80 cents, Gold was $3.50 lower, and the Euro was flat. Support for the SPX remains at 1344 and then 1327, with resistance at 1364 and then 1383. Short term momentum turned higher, reaching overbought midway through the session, where it closed. Tomorrow at 2:15 the FED concludes the FOMC meeting and announces their determination. The market will react with its usual volatility. Many are expecting a 50 bps cut, and the market will likely be disappointed if it does not get what it wants. Before the open at 8:30, the results for the Q4 GDP will be announced. Most are expecting about 1% growth. Quite a contrast from the 4.9% growth of Q3. Best to your evening!
MEDIUM TERM: rally continues into FED day
LONG TERM: bear market