SHORT TERM: new highs, DOW +108
Overnight the Asian markets gained 1.4%. European opened higher and gained 1.4%. US index futures were higher overnight as well. Last night, after the close the FED released: http://www.federalreserve.gov/newsevents/testimony/gibson20140114a.htm, and http://www.federalreserve.gov/newsevents/press/bcreg/20140114b.htm. At 8:30 the PPI was reported higher: +0.4% v -0.1%, and the NY FED was higher: 12.5 v 1.0. The market opened three points above yesterday’s SPX 1839 close and continued to rally. At 11am the SPX hit a new all time high at 1851, then began to pullback. At 2pm the Beige book: http://www.federalreserve.gov/monetarypolicy/beigebook/default.htm. The pullback hit SPX 1846 around 2pm. Then the market remained in a narrow trading range closing at SPX 1848.
For the day the SPX/DOW were +0.60%, and the NDX/NAZ were +0.80%. Bonds lost 7 ticks, Crude rallied $1.80, Gold slipped $3, and the USD was higher. Medium term support rises back to the 1841 and 1828 pivots, with resistance at the 1869 and 1884 pivots. Tomorrow: weekly Jobless claims and CPI at 8:30, then the Philly FED and NAHB index at 10am.
The market opened higher today, quickly cleared SPX 1843 and 1849, and then hit 1851. After the new high the market went into consolidation mode, a five point range, for the rest of the day. Minor wave 3 certainly appears to be underway. Since Minor 1 rose 81 points, it would not be too surprising to see Minor 3 do the same. That would project a rise to about SPX 1897, (1901 OEW pivot), before the next substantial pullback occurs. Thus far the market has rallied 35 points off the SPX 1816 Minor 2 low, without one meaningful pullback. This is the best surge since the 43 point rally off the SPX 1768 mid-December low.
Short term support rises to the 1841 and 1828 pivots, with resistance at SPX 1849 and the 1869 pivot. Short term momentum hit extremely overbought this morning, then backed off. The short term OEW charts remain positive with the reversal level now SPX 1839. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market