SHORT TERM: SPX all time high, DOW +106
Overnight the Asian markets lost 0.2%. Europe opened lower but gained 0.6%. US index futures were higher overnight, and the market opened four points above Friday’s SPX 1836 close. Right at the start the market started to rally. By 10am the SPX had already made an all time high by one point. By noon the SPX hit 1859 and then started to pullback. At 1:30 the FED: http://www.federalreserve.gov/newsevents/press/bcreg/20140224a.htm issued this. The pullback continued throughout the afternoon until the market closed at SPX 1848.
For the day the SPX/DOW were +0.65%, and the NDX/NAZ were +0.65%. Bonds lost 4 ticks, Crude rose 40 cents, Gold rallied $14, and the USD was lower. Medium term support rises to the 1841 and 1828 pivots, with resistance at the 1869 and 1884 pivots. Tomorrow: Case-Shiller and the FHFA housing index at 9am, then Consumer confidence and a speech from FED governor Tarullo at 10am.
The market opened higher today and just kept on rallying, with only one three point pullback, right to an all time high at SPX 1859. The NDX/NAZ both made new bull market highs, but the DOW was still about 300 points shy of a new high. As a result of today’s action we dropped the Minor a labeling on the SPX in favor of the Int. wave ii low at 1738. The DOW charts will maintain both labels until it gets into gear and joins the rest of the market, or rolls over and takes the market with it.
Shorter term we still count five waves from SPX 1738-1848, then a pullback to 1825, now four waves: 1846-1836-1859-1848 so far. This second set of waves could be the second set of five waves within Minor 1. Or, the early stages of Minor 3 with SPX 1825 as Minor 2. Short term support is at the 1841 and 1828 pivots, with resistance at SPX 1851 and the 1869 pivot. Short term momentum hit quite overbought before the afternoon pullback to below neutral. The short term OEW charts remain positive with the reversal level now SPX 1842. Best to your trading!
MEDIUM TERM: uptrend probable
LONG TERM: bull market