SHORT TERM: choppy day, DOW -22
Overnight the Asian markets open gained 1.3%. European markets opened gained 0.4%. US index futures were relatively flat overnight. At 8:30 FED chair Yellen speech: http://www.federalreserve.gov/newsevents/speech/yellen20140501a.htm, plus weekly Jobless claims were reported higher: 344k v 329k, Personal income was reported higher: +0.5% v +0.3%, Personal spending higher: +0.9% v +0.3%, and PCE prices were higher: +0.2% v +0.1%. The market opened one point above yesterday’s SPX 1884 close, dipped to 1881, bounced to 1886, then pulled back to 1878 by 10:30. At 10am ISM was reported higher: 54.9 v 53.7, and Construction spending was higher: +0.2% v +0.1%. Then market then hit a new rally high at SPX 1889 by 11:30, but started to pullback again. In the afternoon the market hit SPX 1880 several times before bouncing to a 1884 close.
For the day the SPX/DOW were -0.05%, and the NDX/NAZ were +0.30%. Bonds gained 6 ticks, Crude lost 30 cents, Gold dropped $4, and the USD was lower. Medium term support remains at the 1869 and 1841 pivots, with resistance at the 1901 and 1929 pivots. Tomorrow: monthly Payrolls at 8:30, (est. +205k), then Factory orders at 10am.
The market opened a bit higher today, bounced around, then hit SPX 1889. After that it started to pullback. The NDX/NAZ rallied early in the day, but apparently the SPX/DOW were not ready to move too much higher yet. Nice to see the growth indices leading for a change. Thus far from the recent SPX 1851 low we have: 1880-1871-1889-1880. This could be four waves up, or a 1-2-1-2. Will have to see if SPX 1880 holds.
Short term support is at the 1869 and 1841 pivots, with resistance at the 1901 and 1929 pivots. Short term momentum displayed a very slight negative divergence at today’s highs then declined. The short term OEW charts remain positive with the reversal level now SPX 1877. Best to your trading!
MEDIUM TERM: uptrend probable, DOW confirmed
LONG TERM: bull market