SHORT TERM: uptrend makes new high, DOW +161
Overnight the Asian markets were mixed, losing 0.5%. European markets opened higher and closed +0.9%. US index futures were slightly higher overnight, then started rising dramatically during FED chairman Bernanke’s speech at 8:00: http://www.federalreserve.gov/newsevents/speech/bernanke20120326a.htm. At the open the market gapped up to SPX 1405 and continued to rally. The market had closed at SPX 1397 on friday. At 10:00 Pending home sales were reported lower: -0.5% vs +2.0%. Around this time the SPX hit 1412, and then began to pullback. The pullback ended around 12:30 with only a 3 point decline, and then the market resumed its rally. At 1:00 the FED issued: http://www.federalreserve.gov/newsevents/press/bcreg/20120326a.htm. Heading into the close the SPX hit 1417, a new uptrend high, and closed there.
For the day the SPX/DOW were +1.30%, and the NDX/NAZ were +1.80%. Bonds lost 1 tick, Crude added 25 cents, Gold rallied $27.00, and the USD was lower. Support for the SPX remains at the 1386 and 1372 pivots, with resistance at the 1440 and 1499 pivots. Short term momentum ended the day extremely overbought. Tomorrow, Case-Shiller at 9:00, then Consumer confidence at 10:00. Also at 10:00 FED director Kamin testifies before congress on the European financial situation. Then at 12:45 FED chairman Bernanke gives his third lecture on the financial crises. Finally, at 3:00 FED governor Duke gives a speech on building sustainable communities.
Today the market rallied ‘pre-open’ on the chairman’s comments, gapped up at the open, and continued to rally for the rest of the day. Minor wave 2, of Intermediate wave five, appears to have ended at SPX 1387. We updated the hourly chart. Minor wave 3 appears to be underway. The next important resistance area is at the OEW 1440 pivot, and the fibonacci SPX 1448 level. The short term resistance levels at SPX 1408 and 1414 have been cleared. The market has already rallied 30 SPX points since friday’s low, is extremely overbought short term, with the largest pullback only 3 points. Would expect a more significant pullback soon. Sorry for the delay. And, best to your trading!
MEDIUM TERM: uptrend new high SPX 1417
LONG TERM: bull market