SHORT TERM: consolidation day, DOW -43
Overnight the Asian markets lost 1.4%. Europe opened lower and lost 0.3%. US index futures were higher overnight, but faded heading into the open. At 8:30 the PPI was reported lower: -0.1% v +0.2%. The SPX opened two points below yesterday’s 1846 close, then rallied to 1852 just past 10am. At 10am Consumer sentiment was reported lower: 79.9 v 81.6. The market then declined to SPX 1840 by 11:30 when the FED released this: http://www.federalreserve.gov/newsevents/press/other/20140314a.htm. A rally back to SPX 1852 just before noon followed. Then the market began to drift lower. Just before the close the SPX hit 1840 again, then ended the week at 1841.
For the day the SPX/DOW were -0.25%, and the NDX/NAZ were -0.50%. Bonds gained 1 tick, Crude added 80 cents, Gold rallied $8, and the USD was lower. Medium term support remains at the 1841 and 1828 pivots, with resistance at the 1869 and 1901 pivots. Last night the FED reported an increase in the M1-multiplier: 0.709 v 0.697. Today the WLEI was reported higher: 52.3% v 51.8%.
The market opened a bit lower today, rallied SPX 1852, dropped to a lower 1840, then rallied back to 1852, before retesting 1840 again at the close. Several reversals all in one day does not occur all that often. Most times this is an indication of some sort of short term bottom forming, but not always the case.
Short term support is at the 1841 and 1828 pivots, with resistance at the 1869 pivot and SPX 1884. Short term momentum hit extremely oversold today, then ended with a positive divergence. The short term OEW charts remain negative with the reversal level now SPX 1858. Lots to cover in the weekend update, enjoy you weekend.
MEDIUM TERM: uptrend
LONG TERM: bull market