SHORT TERM: market approaches new highs, DOW +63
Last night the FED released the following: http://www.federalreserve.gov/newsevents/press/bcreg/20140522a.htm. Overnight the Asian markets gained 0.8%. Europe opened lower but gained 0.2%. US index futures were higher overnight. The market opened two points above yesterday’s SPX 1892 close, and continued to rise. Throughout the day the climb continued until the market hit SPX 1901 and closed there.
For the day the SPX/DOW were +0.40%, and the NDX/NAZ were +0.75%. Bonds gained 6 ticks, Crude added 60 cents, Gold slipped $2, and the USD was higher. Medium term support remains at the 1869 and 1841 pivots, with resistance at the 1901 and 1929 pivots. Last night the FED reported an increase in the M1-multiplier: 0.712 v 0.708. Today the WLEI was reported higher: 55.0% v 54.9%.
The market opened higher today and just kept on rising with only 2 point pullbacks along the way. This would have been impressive if it was not a Friday before a three day weekend. Nevertheless, the SPX came within one point of its all time high. And, the much maligned and short sellers favorite NDX confirmed an uptrend. The only one of the four major indices not in a confirmed uptrend is the NAZ. And, that should occur next week. We will be detailing two potential Major wave 5 counts this weekend. Both have been posted on the SPX/DOW charts for a few days now.
Short term support is at SPX 1891 and the 1869 pivot, with resistance at the 1901 and 1929 pivots. Short term momentum turned higher after yesterday’s dip and ended the week quite overbought. The short term OEW charts remain positive with the reversal level now SPX 1896. Best to your three day weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market