SHORT TERM: quiet day starts the week, DOW +15
Overnight the Asian markets gained 0.2%. Europe opened lower but gained 0.2% as well. US index futures were lower overnight, and the market opened two points below friday’s SPX 1418 close. After some hesitation in the opening minutes the market started to rally. At 11:00 the SPX hit a new rebound high at 1422. Then after a pullback to SPX 1417 by 2:30 the market bounced to close at 1419.
For the day the SPX/DOW were +0.05%, and the NDX/NAZ were +0.30%. Bonds gained 2 ticks, Crude slipped 25 cents, Gold rallied $6, and the USD was lower. Medium term support remains at the 1386 and 1372 pivots, with resistance at the 1440 and 1499 pivots. Tomorrow: the two day FOMC meeting begins. At 8:30 the Trade deficit will be reported, followed by Wholesale inventories at 10:00.
The market opened a bit lower today, then rallied to a new rebound high at SPX 1422. After a small five point pullback, the market then bounced higher for the rest of the day. This market appears to have a slight upward bias as it awaits the tues/wed FOMC meeting. Weekend rumors suggest the FED will bump QE 3 to $80 bln/mth, with Operation Twist expiring. Whatever they do decide may be a risk on/risk off event, short/medium/long term.
Short term support remains at SPX 1413/16 and 1402/03, with resistance at 1422/27 and the 1440 point. Short term momentum hit quite overbought this morning then declined to neutral. The short term OEW charts remain positive with the swing level now around 1411. Best to your trading during this potentially pivotal week.
MEDIUM TERM: uptrend highly probable
LONG TERM: market nearing bull/bear inflection point