SHORT TERM: market tries to rebound, DOW -25
Overnight the Asian markets were mixed. Europe opened higher and closed +0.40%. US index futures were higher overnight as well. At 8:30 FED governor Duke’s speech was released: http://www.federalreserve.gov/newsevents/speech/duke20110524a.htm. The market opened higher at SPX 1320 and continued to rally. The SPX had closed at 1317 yesterday. At 10:00 New homes sales were reported higher: 323K vs 300K. The market continued higher until 10:30 when it hit SPX 1324. Then a pullback followed. At 1:30 the SPX hit 1314, then rallied to 1320 by 2:30, and closed at 1316.
For the day the SPX/DOW were -0.15%, and the NDX/NAZ were -0.50%. Bonds gained 5 ticks, Crude rallied $1.80, Gold rose $8.00 and the USD was lower. Support for the SPX remains at 1313 and then 1303, with resistance at 1363 and then 1372. Short term momentum rose from quite oversold yeaterday to above neutral today. Tomorrow, Durable goods orders at 8:30, then FHFA home prices at 10:00.
The market tried to rally today but could make little progress to the upside. It did successfully retest the OEW 1313 pivot again but ended negative on the day. It certainly looks, more and more, like we have been in a downtrend since SPX 1371. Important support remains at the 1313, and then, 1303 pivots. Short term resistance is now at SPX 1326 and then the 1363/1372 pivots. Best to your trading!
MEDIUM TERM: uptrend high SPX 1371
LONG TERM: bull market