SHORT TERM: market gaps down and continues lower, DOW -316
Overnight the Asian markets were lower with the only exception China’s SSEC +1.1%. Europe came in about 1.3% lower and ended their session -1.50%. At 8:30 the core PCE was reported higher than expected at +0.3%, consumer spending was unchanged, and incomes rose 0.4%. The index futures, which were lower most of the night sold off before the opening. At the open the SPX gapped through the EW support pivot at 1364 and 1360, hitting the next EW support pivot at 1344 by 10:30. After several meager attempts to rally the SPX only managed to reach 1345 by 11:30. Even the speech by FED governor Mishkin did little to calm the market: http://www.federalreserve.gov/newsevents/speech/mishkin20080229a.htm. By 1:30 the support at 1344 gave way, and the market headed lower to the next EW pivot at 1327 heading into the close. At the close the SPX/DOW were -2.60%, and the NDX/NAZ were -2.65%. Bonds rallied about 2 points again, Crude lost 95 cents. Gold rose nearly $6.00, and the Euro was lower. Support for the SPX is now at 1327 and then 1316, with resistance at 1344 and then 1364. Short term momentum stayed oversold all day. With today’s break below SPX 1360 it certainly appears the next downtrend in this bear market is underway. Will update all the charts this weekend. Best to yours!
MEDIUM TERM: the next downtrend in this bear market may now be underway
LONG TERM: bear market