SHORT TERM: quiet session closes out 2011, DOW -69
Overnight the Asian markets were mostly higher gaining 0.7%. European markets opened lower but gained 0.7% as well. US index futures were higher overnight but the market opened slightly lower at SPX 1262. The SPX had closed at 1263 yesterday. In the opening minutes the SPX dropped to 1260 and then bounced to 1264 by 10:00. After that the nmarket drfited lower for the rest of the day, hitting SPX 1257 just before a 1258 close.
For the day the SPX/DOW were -0.50%, and the NDX/NAZ were -0.30%. Bonds gained 9 ticks, Crude dropped 65 cents, Gold rallied $16.00, and the USD was lower. Support for the SPX slips to 1240 and then 1222, with resistance back at 1261 and then 1291. Short term momentum hit overbought early and then hit oversold at the close. Last night the FED reported the Monetary base had declined. Today the WLEI upticked to 42.4% vs 42.3%.
A relatively quiet day with a downward bias to close out the year. It is interesting to note the SPX has been having trouble clearing the OEW 1261 pivot for the past six trading days. Even though this pivot is one lower than the OEW 1291 pivot top in October. The market opened about flat, bounced to SPX 1264 to hit overbought, and then declined to 1257 near the close to get oversold. Volatility has narrowed down to a seven point range, or about 0.5%. This will very likely change next week. Short term OEW charts remain positive, with support now just above SPX 1250. Wishing everyone a healthy and prosperous New Year!
MEDIUM TERM: uptrend
LONG TERM: inflection point