SHORT TERM: another gap up opening sold, DOW +59
Last night FED governor Tarullo gave a speech in NY: http://www.federalreserve.gov/newsevents/speech/tarullo20140327a.htm. Overnight the Asian markets gained 0.7%. European markets opened higher and gained 0.8%. US index futures were higher overnight as well. At 8:30 Personal income (+0.3% v +0.3%)/spending (+0.3% v +0.4%) and PCE prices (+0.1% v +0.1%) were all reported higher. The market gapped up at the open to SPX 1855 and continued to rally. The SPX had closed at 1849 yesterday. At 10am Consumer sentiment was reported higher: 80.0 v 79.9. The market rallied to SPX 1867 by 11am, then began to pullback. The pullback lasted until 2:30 when the SPX hit 1853, then it bounced into a 1858 close.
For the day the SPX/DOW were +0.40%, and the NDX/NAZ were +0.15%. Bonds lost 12 ticks, Crude added 35 cents, Gold was flat, and the USD was flat. Medium term support remains at the 1841 and 1828 pivots, with resistance at the 1869 and 1901 pivots. Last night the FED reported a decline in the M1-multiplier: 0.698 v 0.709. Today the WLEI was reported higher: 52.9% v 52.3%.
The market gapped up at the opening today for the third time this week. The opening rally continued for 1.5 hours this time before the growth indices started to pullback. Heading into the afternoon the NDX/NAZ turned negative, closing their opening gap. The SPX/DOW, however, held their gap opening throughout the day. That has basically been the theme of this market this week, this month: higher openings then sell growth stocks. The SPX/DOW have held up quite well considering, as there appears to have been a rotation out of growth into cyclicals.
Short term support remains at the 1841 sand 1828 pivots, with resistance at the 1869 pivot and SPX 1884. Short term momentum rose from quite oversold yesterday to overbought before declining to neutral. The short term OEW charts continued their vacillation ending the day negative, with the reversal level now SPX 1860. Best to your weekend!
MEDIUM TERM: uptrend weakening
LONG TERM: bull market