SHORT TERM: choppy day to end week, DOW +29
Overnight the Asian markets lost 1.5%. Europe opened lower but gained 0.4%. US index futures were higher overnight, and the market opened two points above yesterday’s SPX 1832 close. After the rally continued to SPX 1838 by 10am, the market pulled back to 1829 by noon. Another rally attempt followed. At 1:15 FED governor Stein’s speech was released: http://www.federalreserve.gov/newsevents/speech/stein20140103a.htm. Then at 2:30: http://www.federalreserve.gov/newsevents/speech/bernanke20140103a.htm chairman Bernanke’s speech was released. By 3:30 the market had hit SPX 1337. Then a pullback into the close ended the week at SPX 1831.
For the day the SPX/DOW were mixed, and the NDX/NAZ were -0.50%. Bonds lost 3 ticks, Crude dropped $1.20, Gold rose $13 and the USD was higher. Medium term support remains at the 1828 and 1779 pivots, with resistance at the 1841 and 1869 pivots. Last night the FED reported an increase in the M1-multiplier: 0.722 v 0.710. Today the WLEI was reported lower: 51.8% v 51.9%.
The market opened higher today, rallied to SPX 1838, then pulled back to 1829 and the 1828 pivot again. After that it turned higher into the afternoon, before pulling back again to end the day. The decline from Tuesday’s SPX 1849 high is certainly beginning to look like a Minor wave pullback. Market activity has become choppy: 1828-1838-1829- then up and down, with a downward bias. These types of 10 or so point swings have been quite common during pullbacks of this degree. Expecting this to continue for a while.
Short term support remains at the 1828 pivot and SPX 1814, with resistance at the 1841 pivot and SPX 1849. Short term momentum bounced around today between neutral and oversold, ending just below neutral. The short term OEW charts also vacillated today, ending negative with the reversal level now SPX 1835. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market