SHORT TERM: market rebuonds in volatile trading, DOW +35
Overnight all the Asian markets were higher. Europe opened higher but closed -1.05%. US index futures were higher overnight but futures began to fade heading into the open. Just after the open the Chicago PMI was reported higher: 56.1% v 54.2%. The market opened about unchanged from friday’s SPX 1091 close. After a dip to SPX 1088 in the opening minutes the market rallied to 1097 by 10:30. That was the best level of the day and below friday’s best level of 1099. The market then headed straight down to SPX 1086 over the next hour and a half as the USD rallied. At 11:00 FED assoc. director Greenlee’s testimony was released: http://www.federalreserve.gov/newsevents/testimony/greenlee20091130a.htm. The market stabilized around noon and then it tried to rally. For the rest of the day the market continued to edge higher, but was only around SPX 1089 at 3:00. Then some last hour buying drove the SPX back to the highs of the day. For the day the SPX/DOW were +0.35%, and the NDX/NAZ were +0.20%. Bonds gained 4 ticks, Crude gained $1.15, Gold added $4.00, and the USD ended lower. Support for the SPX remains at 1090 and then 1061, with resistance at 1107 and then 1133. Short term momentum remained near oversold levels for the entire day until the last hour when it rose past neutral. Tomorrow, ISM manufacturing and Construction spending at 10:00. Later in the day, around 2:00, the monthly Auto sales will be released.
The market spent the whole day, as it did friday, vacillating around the OEW 1090 pivot. The short term wave pattern from the middle of November looks quite choppy. Until the market can break through the 1107 pivot range on the upside, or break below the 1090 pivot range on the downside, we remain in this trading/churning range. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bear market rally