SHORT TERM: new highs then pullback, DOW +19
Overnight the Asian markets gained 0.6%. Europe opened higher and gained 0.2%. US index futures were lower overnight, and the market opened one point below Friday’s SPX 1949 close. Right after the open, however, the market moved higher. Around noon the SPX hit the 1956 pivot, then started to pullback. At 12:45 FED governor Tarullo’s speech: http://www.federalreserve.gov/newsevents/speech/tarullo20140609a.htm. The pullback continued until 2:30 when the SPX hit 1947. Then a bounce to SPX 1952 by 3:30, before a dip to 1951 to end the day.
For the day the SPX/DOW were +0.10%, and the NDX/NAZ were +0.20%. Bonds lost 6 ticks, Crude rallied $1.70, Gold was flat, and the USD was higher. Medium term support remains at the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Tomorrow: Wholesale inventories at 10am.
A quiet open for a Monday morning, and the market marched right up to the OEW 1956 pivot then pulled back. This is the first notable pullback since SPX 1916, and the third since 1862. Usually the pullback after a five wave sequence, (1886-1868-1825-1916-1956), completes that pattern. Then the market generally makes a larger pullback, i.e. 15 to 25 points, before the uptrend resumes. Nine points so far. We posted a tentative green Minute iii label at SPX 1956 around noon, and are expecting this pullback to be Minute wave iv. Support for Minute iv should be in the OEW 1929 pivot range. This is barring an extension of Minute iii into a nine wave sequence.
Short term support is at the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Short term momentum displayed a negative divergence at the high then declined to neutral. The short term OEW charts flip-flopped today with the reversal level now SPX 1948. Best to your Tuesday trading!
MEDIUM TERM: uptrend
LONG TERM: bull market