SHORT TERM: another gap opening, DOW +91
Overnight the Asian markets lost 1.0%. European markets opened lower and lost 0.1%. US index futures were higher overnight, at 8:30 FED governor Raskin’s speech was released: http://www.federalreserve.gov/newsevents/speech/1A78D53EC3314751BD5CEE9DA84A89C7.htm. The market gapped up at the open today to SPX 1551. This was the fourth gap opening this week. After a small rise to SPX 1553 the market pulled back to 1550 by 10:00. Another push higher took the SPX to 1557 by 11:30, then another small pullback to 1553 followed. http://www.federalreserve.gov/releases/g17/revisions/Current/DefaultRev.htm, at 12:00 this was released. The market then made a slightly higher high at SPX 1558 by 1:30. Then after a pullback to SPX 1553 by 3:30, the market rose to end the week at 1557.
For the day the SPX/DOW were +0.70%, and the NDX/NAZ were +0.80%. Bonds gained 2 ticks, Crude rallied $1.45, Gold slipped $7, and the USD was lower. Medium term support bumps back up to the 1552 and 1523 pivots, with resistance again at the 1576 and 1614 pivots. Last night the FED reported the Monetary base hit a new high: $2.977 tln vs $2.916 tln. Today the WLEI was reported higher: 56.4% vs 56.3%.
The market continued its indecisive ways today, as it gapped up at the open then crept higher for the rest of the day. Thus far this uptrend has displayed many signs of wanting to turn down. But each time this occurs the market rebounds back up again. Consolidation or topping? Time will tell.
Short term support is back up to the OEW 1552 and 1523 pivots, with resistance at the 1576 and 1614 pivots. Short term momentum ended the day overbought. The short term OEW charts, which have vacillated all week, turned positive again with the reversal level at SPX 1552. Best to your week!
MEDIUM TERM: uptrend still choppy
LONG TERM: bull market