SHORT TERM: market ends volatile week on the downside, DOW -159
Overnight all the Asian markets were higher. Europe opened higher but closed -0.65%. US index futures were higher overnight and at 8:30 preliminary Q1 GDP was reported +3.2% v +5.6%. The market opened slightly lower to SPX 1205 and moved up to 1208 by 10:00. At 9:30 the FED issued the following press release: http://www.federalreserve.gov/newsevents/press/bcreg/20100430a.htm. At 9:45 the Chicago PMI was released: 63.8% v 58.8%, and at 10:00 Consumer sentiment was revised upward: 72.2 v 69.5. The market then took on a negative tone as financial leader GS continued to decline. By 10:30 the SPX hit 1198. At 11:00 the FED issued another press release: http://www.federalreserve.gov/newsevents/press/monetary/20100430a.htm. A rally back to SPX 1205 by 11:30 failed to gather momentum and the market declined to 1192 by 1:00. Another rally attempt from a short term oversold condtion took the SPX to 1197 by 1:30, but the market headed lower again. Heading into the close the SPX traded as low as 1186 and closed at the 1187 pivot.
For the day the SPX/DOW were -1.55%, and the NDX/NAZ were -2.05%. Bonds were up 14 ticks, Crude gained 80 cents, Gold rallied $11.00 and the USD was lower. Support for the SPX remains at 1187 and then 1176, with resistance at 1222 and then 1240. Short term momentum was quite oversold at the close. The weekly LEI slipped 0.1% this week and remaind at an expanding 62.4%. Public sentiment moved higher to 37.2% v 34.5%.
The market started off well enough today after the GDP report and others. Yet continued selling in the financials and GS weighed on the market all day. At today’s low the SPX had pulled back 23 points from yesterday’s 1209 high. Another notable pullback during this uptrend. This market has become quite choppy over the past two weeks. After the SPX hit 1214 on April 15th we have had four notable pullbacks of 30, 21, 38 and 23 points. Prior to that date there weren’t any pullbacks over 20 points since the end of February. Naturally, todays selloff pushed the short term OEW charts to the negative side again. Will review this weekend. Best to you and yours!
MEDIUM TERM: uptrend
LONG TERM: bull market