SHORT TERM: market continues its sideways action and closes lower, DOW -8
Overnight all the Asian markets were lower. Europe opened lower and closed -1.75%. US index futures were sharply lower overnight but moved a bit higher after Case-Shiller reported home prices were declining at an annual rate of -18.6% v -19.0%. At the open the SPX gapped down to 847, and that was the low for the day. A rally followed and at 10:00 the Conference board reported Consumer confidence jumping to 39.2% v 26.9%. The rally continued until 11:00 when the SPX hit 862. After a small pullback to 855 by 12:00, the market then rallied to SPX 864 by 2:30. That was the high for the day. Then the market pulled back into the close to finish at 855. For the day the SPX/DOW were -0.20%, and the NDX/NAZ were -0.45%. Bonds were off 21 ticks, Crude slipped 45 cents, Gold dropped $13.00 and the Euro was higher. Support for the SPX remains at 848 and then 789, with resistance at 912 and then 935. Short term momentum rose to about neutral during the rally and then turned lower into the close. Tomorrow, Q1 GDP at 8:30, and after 2:00 the results of the two day FOMC meeting. Should be an interesting, volatile day.
While the SPX did trade below 850 this morning the market did not follow through on the downside. Instead it rallied back to within five points of yesterdays highs before finishing lower on the day. Short term this market continues to look lower, but remains in an upper 860 to lower 850 trading range. We should get some resolution, one way or the other, tomorrow. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bear market