SHORT TERM: yesterday’s pullback continues, DOW +12
Overnight the Asian markets lost 0.5%. Europe opened lower and lost 0.4%. US index futures were lower overnight, and at 8:30 Q1 GDP was reported lower than expected: +2.5% vs. +0.4%. The market opened one point below yesterday’s SPX 1585 close. In the first few minutes it dipped to SPX 1582, then bounced to 1586 by 10:00. At ten Consumer sentiment was reported higher: 76.4 vs. 72.3. Nevertheless, the market started to pullback. Around 12:00 the SPX found some support at 1578 and tried to rally. At 2:00 the FED: http://www.federalreserve.gov/newsevents/press/monetary/20130426a.htm, released this. By 3:30 the SPX had made it back to the high of the day at 1586, then pulled back to close at 1582.
For the day the SPX/DOW were mixed, and the NDX/NAZ lost 0.30%. Bonds gained 12 ticks, Crude slid 75 cents, Gold slipped $7, and the USD was lower. Medium term support remains at the 1576 and 1552 pivots, with resistance at the 1614 and 1628 pivots. Last night the FED reported a contraction in the M1 multiplier: 0.809 vs. 0.832. Today the WLEI was reported higher: 56.8% vs. 56.6%.
The market opened about flat today then pulled back to SPX 1578. This extends the recent decline to 15 points, (1593-1578), which is not much considering the market dropped 17 points in a few minutes on a false rumor on Tuesday. The energizer bunny uptrend continues to defy everything around it, and just keeps on going. We’ll review the charts this weekend and see if there is anything new to add.
Short term support remains at the 1576 and 1552 pivots, with resistance at SPX 1597 and the 1614 pivot. Short term momentum hit oversold today then rebounded to neutral. The short term OEW charts remain positive with the reversal level now SPX 1574. Best to your weekend!
MEDIUM TERM: extending Int. iii, or B wave rally
LONG TERM: bull market