SHORT TERM: Volcker Rule passed, DOW -52
Overnight the Asian markets lost 0.3%. Europe opened lower and lost 0.8%. US index futures were higher, then lower, overnight. The market opened four points below yesterday’s SPX 1808 close, bounced around until 10am, then tried to rally. At 10am Wholesale inventories were reported higher: +1.4% v +0.4%. At 10:30 the SPX hit 1809, the high for the day, and then began to pullback again. At 1:30 the FED released: http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20131210b.htm, and http://www.federalreserve.gov/newsevents/press/bcreg/20131210a.htm. At 2pm the SPX hit 1802, bounced to 1806 by 3:30, then closed at 1803.
For the day the SPX/DOW were -0.30%, and the NDX/NAZ were -0.15%. Bonds gained 17 ticks, Crude rose $1.15, Gold rallied $20, and the USD as lower. Medium term support remains at the 1779 and 1699 pivots, with resistance at the 1828 and 1841 pivots. Tomorrow: the Budget deficit at 2pm.
Yesterday the market opened higher, hit SPX 1812 by 10am, traded down to 1807, and then went into an 1807-1811 trading range for the rest of the day. Today the market opened lower, bounced to SPX 1809 by 10:30, traded down to 1802, and then went into an 1802-1806 trading range for the rest of the day. Not much going on this week, so far. Nevertheless, we now have either completed three waves up from SPX 1779, or four waves, depending upon your preference: 1796-1783-1812-1802 so far. While this market has churned the past few days it has been working through potential counts, and setting up for its next big move.
Short term support is at the 1779 pivot and SPX 1746, with resistance at SPX 1810, SPX 1818 and the 1828 pivot. Short term momentum spent most of today under neutral. The short term OEW charts remain positive with the reversal level now SPX 1802. Best to your holiday trading!
MEDIUM TERM: uptrend
LONG TERM: bull market