SHORT TERM: consolidation day, DOW -46
Overnight the Asian markets mostly lower, but gained 0.3%. European markets opened lower, and ended relatively flat. US index futures were flat overnight. Last night the FED released the chairman’s congressional testimony in advance of today’s testimony: http://www.federalreserve.gov/newsevents/testimony/bernanke20120321a.htm. The market opened at SPX 1407, a point higher than where it closed yesterday. It pushed to SPX 1408 in the opening minutes, and then went into pullback mode. At 10:00 Existing home sales were reported higher: 4.59 mln vs 4.57 mln. The market pulled back to SPX 1401 by 11:00, and then tried to rally. Around 3:00 the SPX hit 1407, and then pulled back into a 1403 close.
For the day the SPX/DOW were -0.25%, and the NDX/NAZ were mixed. Bonds gained 22 ticks, Crude rallied 80 cents, Gold added $2.00, and the USD was flat. Support for the SPX remains at the 1386 and 1372 pivots, with resistance at the 1440 and 1499 pivots. Short term momentum hit oversold again today during the pullback. Tomorrow, weekly Jobless claims at 8:30. Then at 10:00 the FHFA housing price index and Leading indicators. Also at 10:00 FED governor Tarullo testifies before the senate on regulatory reform. Then at 12:45 FED chairman Bernanke gives the second part of his four part lecture on the financial crisis.
The market opened relatively flat today, moved slightly above yesterday’s (1398-1407) range to 1408, then dipped into that range and remained there for the rest of the day. The DOW made a lower low than yesterday, but the NDX/NAZ made a higher high. It was clearly a consolidation day.
While we await a new uptrend high, the tentative green Minor wave 2 label remains at SPX 1398. Short term support remains at SPX 1398, then the 1386 and 1372 pivots. Overhead resistance is at SPX 1414, then the 1440 and 1499 pivots. Short term momentum touched oversold and ended the day around neutral again. Short term OEW charts remain positive from SPX 1365 with support now in the mid 1390’s. Best to your trading!
MEDIUM TERM: uptrend high SPX 1414
LONG TERM: bull market