SHORT TERM: quiet consolidation day, DOW +33
Overnight the Asian markets gained 0.4%. European opened higher and gained 0.3%. US index futures were higher overnight. At 8:30 weekly Jobless claims were reported lower: 340K vs 344K, and the Trade deficit expanded: -$44.4 bln vs -$38.5 bln. The market opened two points above yesterday’s SPX 1541 close. At 9:30 FED governor Powell’s testimony: http://www.federalreserve.gov/newsevents/testimony/powell20130307a.htm. Then after a pop to the uptrend high at SPX 1545 the market dipped to 1542 by 10:00. The market then ground its way higher to a new uptrend high at SPX 1546 by 12:00. Flow of Funds were reported: http://www.federalreserve.gov/Releases/Z1/Current/default.htm. Then the market started to drift lower. At 2:00 the SPX hit 1542 again then moved higher. At 3:00 Consumer credit was reported higher: $16.2 bln vs $14.6 bln. Heading into the close the SPX hit 1546 again by 3:30, then closed at 1544.
For the day the SPX/DOW were +0.20%, and the NDX/NAZ were +0.25%. Bonds lost 15 ticks, Crude rallied $1.10, Gold dropped $5, and the USD was lower. Medium term support remains at the SPX 1523 and 1499 pivots, with resistance at the 1552 and 1576 pivots. Tomorrow: the monthly Payrolls report at 8:30 then Wholesale inventories at 10:00. After the market closes there is a speech from FED governor Duke at 8:00.
The market opened higher today, but spent the day in a tight four point range: SPX 1542-1546. It did make a new uptrend high, but there did not appear to be any great interest, either way, with the monthly Payrolls report tomorrow. The negative short term divergence, we observed after the close yesterday, remains. The count remains Minute i SPX 1525, Minute ii SPX 1501 and Minute iii SPX 1546 so far. We uncovered a series of time and price relationships for the market longer term. It offers a potential roadmap through 2014. Will report on this in the weekend update.
Short term support is at the 1523 and 1499 pivots, with resistance at the 1552 and 1576 pivots. Short term momentum displays a negative divergence. The short term OEW charts remain positive with the reversal level now SPX 1529. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market