SHORT TERM: gap up opening leads to pullback, DOW -64
Overnight Cyprus reached an agreement, at the cost of their savers, and Asian markets gained 0.7%. Europe opened higher but lost 0.6%. US index futures were higher overnight and the market gapped up at the open to SPX 1564, dipped to 1561, then made a new uptrend high at 1565 by 10:00. After that the market started to pullback. The pullback closed the opening gap and trended lower until 1:00, when the SPX hit 1546. Also at 1:00: http://www.federalreserve.gov/newsevents/speech/bernanke20130325a.htm FED chairman Bernanke’s speech was released. The market then rebounded to SPX 1556 by 2:00. Another pullback followed to SPX 1548 by 3:30, then the market bounced to close at 1552.
For the day the SPX/DOW were -0.40%, and the NDX/NAZ were -0.35%. Bonds gained 2 ticks, Crude rallied 85 cents, Gold lost $3, and the USD was higher. Medium term support remains at the 1552 and 1523 pivots, with resistance at the 1576 and 1614 pivots. Tomorrow: Durable goods at 8:30, Case-Shiller at 9:00, then Consumer confidence and New homes sales at 10:00.
The market gapped up at the open, made a new uptrend high, and then immediately sold off. The SPX 1560’s has certainly been a tough area, for this uptrend, to break through. It is another good day traders market, as was mid-February. But quite tricky to count from a short term perspective. We continue to feel SPX 1539 is a critical level for the uptrend, just like 1537 was a week ago and 1500 two weeks before that. Until the market takes out this low it is still an uptrend.
Short term support remains at the 1552 and 1523 pivots, with resistance at the 1576 and 1614 pivots. Short term momentum ended the day just below neutral. The short term OEW charts continue to vacillate positive/negative, ending the day negative with the reversal level at SPX 1553. Best to your trading!
MEDIUM TERM: uptrend new high SPX 1565
LONG TERM: bull market