SHORT TERM: no taper market makes new highs, DOW +147
Overnight the Asian markets gained 0.6%. European markets opened higher and gained 0.2%. US index futures were higher overnight. At 8:30 Housing starts (891k v 896k), and Building permits (918k v 943k) were reported lower. The market opened one point above yesterday’s SPX 1705 close. The market pulled back to SPX 1700 by 12:30, and then started to drift higher ahead of the FOMC statement at 2:00: http://www.federalreserve.gov/newsevents/press/monetary/20130918a.htm. The market then spiked higher on news of no QE tapering. By 3:00 the SPX made new highs hitting 1729, dipped to 1724, then closed out the day at 1726.
For the day the SPX/DOW were +1.10%, and the NDX/NAZ were +1.15%. Bonds gained 47 ticks, Crude rose $2.50, Gold jumped $54, and the USD was lower. Medium term support remains at the 1699 and 1680 pivots, with resistance at the 1762 and 1779 pivots. Tomorrow: weekly Jobless claims at 8:30; then Exiting home sales, Leading indicators, and the Philly FED at 10:00.
The market opened quietly today, as it has since early Monday. Then at 2:00 the fireworks began as the much anticipated QE tapering was not announced. On the “stand pat” news the markets soared to new all time highs. Inflection point resolved. Our preferred count is that this uptrend is Major wave 5 of Primary III. This is the count that has been posted on the DOW charts. There is an alternate count, which is much talked about on the blog, that is even more bullish. Once we have had time to review the charts we will comment further.
Short term support is now at SPX 1710 and the 1699 pivot, with resistance at the 1762 and 1779 pivots. Short term momentum ended the day quite overbought. The short term OEW charts remain positive with the reversal level now SPX 1691. Best to your trading on post FOMC day!
MEDIUM TERM: uptrend
LONG TERM: bull market