SHORT TERM: morning rally holds, DOW +91
Overnight the Asian markets were mixed. Europe opened higher and closed +1.80%. US index futures were higher overnight but retraced those gains heading into the open. At the open the SPX hit 921 and then pulled back to 916 by 10:00. Holding that low the SPX then rallied until 12:30 when it hit SPX 928. The market then drifted lower over the next hour and a half while only pulling back three points. At 2:00 the FED made the following press release: http://www.federalreserve.gov/newsevents/press/bcreg/20090629a.htm. The SPX then started to edge higher, but made little progress heading into the close. For the day the SPX/DOW were +1.00%, and the NDX/NAZ were +0.30%. Bonds were up about 3 ticks, Crude gained $2.30, Gold dropped $2.00, and the Euro was higher. Support for the SPX remains at 912 and then 848, with resistance at 935 and then 961. Short term momentum was overbought at the highs with a slight negative RSI divergence. Tomorrow, Chicago PMI and the Consumer confidence reading around 10:00. Today the SPX rallied to the first level of resistance at 927 noted over the past few days. The next resistance is at the OEW pivot SPX 935. It appears the SPX will need to drop below todays low to get momentum moving to the downside again. Best to your trading!
MEDIUM TERM: uptrend may have topped at SPX 956
LONG TERM: bear market