SHORT TERM: market shrugs off more negative news and closes mixed, DOW +43
Overnight the Asian markets were mixed, and Europe closed out the week with a 0.90% gain. At the open the SPX rallied to 1396, closed yesterday at 1389. Then pulled back to 1387 by 10:00, when UoM reported consumer sentiment had dropped again in April to its lowest level in 26 years, (1982). Market steadied on the news, but rumors circulated that an American ship had fired on an Iranian ship in the Gulf. The market pulled back futher on that news, as Crude rallied. By 11:30 the details were disclosed that an Amercian merchant ship had fired warnings shots at two Iranian boats. The market bottomed at 1380, and then rallied into the close, ekeing out a slightly higher uptrend high at 1399. At the close the SPX/DOW were +0.50%, and the NDX/NAZ were -0.35%. Bonds lost 10 ticks, Crude gained $2.35 to a new high, Gold lost $2.50, and the Euro was lower. Support for the SPX remains at 1384 and then 1363, with resistance at 1410 and then 1438. Short term momentum is still displaying a negative RSI divergence on the hourly/daily charts, and the weekly charts are getting overbought. The near term indicators remain with divergences as well. Below is an interesting SPX 15min line chart from the late March low. Best to your weekend!
MEDIUM TERM: uptrend ekes out a new high at SPX 1399
LONG TERM: bear market