SHORT TERM: market pulls back ahead of FOMC meeting, DOW -51
Overnight the Asian markets were mixed. Europe opened lower but closed +0.35%. US index futures were much lower overnight, then rallied with Europe, but the market still opened lower at SPX 857. It closed at SPX 866 on friday. After bouncing around for about an hour the market then rallied. By 12:00 The SPX hit 869 the high for the day. But as the TRANs average (-4.7%) continued to weaken on the swine flu news the market began to pullback. At 2:00 the SPX hit 855 and found some support and then bounced a bit higher into the close. The market spent most of the day within fridays range. At the close the SPX/DOW were -0.80%, and the NDX/NAZ were -0.55%. Bonds were up about 3/4 points, Crude lost $1.45, Gold dropped $7.00, and the Euro was lower. Support for the SPX remains at 848 and then 789, with resistance at 912 and then 935. Short term momentum worked its way lower for most of the day. Tomorrow, the FED starts their FOMC meeting. Also, Case-Shiller home prices will be reported at 9:00, and then a Consumer confidence reading at 10:00. Some of the short term indicators suggest that Minor wave C of Intermediate wave A started on friday at SPX 876. But this market will need to break below SPX 850 to help confirm this short term scenario. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bear market