SHORT TERM: new downtrend low, DOW +4
Overnight the Asian markets lost 1.1%. Europe opened lower, but gained 0.4%. US index futures were lower, and at 8:30 Q3 GDP came in higher than expected: +2.0% vs +1.3%. The market opened slightly lower at SPX 1412, bounced to 1417 in the first few minutes, then began to pullback. At 10:00 Consumer sentiment was reported lower: 82.6 vs 83.1. Then at 11:00 the FED released this: http://www.federalreserve.gov/newsevents/press/bcreg/20121026a.htm. The pullback continued until around noon when the SPX hit a new downtrend low at 1403. Then it started to rally. By 3:00 the SPX had rallied back to the high of the day at 1417. Then a pullback into the close ended the week at SPX 1412.
For the day the SPX/DOW were mixed, and the NDX/NAZ were +0.20%. Bonds gained 21 ticks, Crude added 5 cents, Gold lost $1, and the USD was flat. Medium term support remains at the 1386 and 1372 pivots, with resistance at the 1440 and 1499 pivots. The WLEI was reported slightly lower today: 56.0% vs 56.1%.
The market opened relatively flat today, bounced to SPX 1417, then rolled over to make a new downtrend low at 1403. After four days of bouncing around the SPX 1413/16 resistance area the market finally hit the SPX 1402/03 support area. After hittng the low, however, the market rallied right back to SPX 1417. While this market has worked its way lower this week, it certainly has been quite choppy since tuesday.
Short term support remains at SPX 1402/03 and then 1396/98, with resistance at SPX 1413/16 and then 1422/27. Short term momentum ended the week above neutral. The short term OEW charts remain negative, with the swing level now around SPX 1423. Best to your weekend!
MEDIUM TERM: downtrend likely underway
LONG TERM: bull market