SHORT TERM: gap down opening then choppy day, DOW +5
Overnight the Asian markets lost 0.5%. Europe opened lower and lost 0.4%. US index futures were lower as well. At 8:30 the NY FED was reported higher: 19.3 v 19.0. Then at 9:15 Industrial production was reported higher: +0.6% v -0.6%. The market gapped down at the open, nonetheless, to SPX 1931 and then started to rally. At 10am the NAHB was reported higher: 49 v 45. The market continued to rally until 10:30 when the SPX hit 1941, then it started to pullback. At 11am the FED reported this: http://www.federalreserve.gov/newsevents/press/other/20140616a.htm. The pullback continued until 11:30 when the SPX hit the opening low at 1931. Another rally followed taking the market nearly back to the highs of the day, but falling one point short at SPX 1940. Then a pullback to SPX 1934, just past 3pm, was followed with a bounce to end the session at 1938.
For the day the SPX/DOW were +0.05%, and the NDX/NAZ were +0.20%. Bonds were flat, Crude slipped 10 cents, Gold slid $5, and the USD was lower. Medium term support remains at the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Tomorrow: Housing starts, Building permits, and the CPI all at 8:30.
The market gapped down at the open today, and then the BOTs went to work. The expected volatility this week appears to have already begun. After touching SPX 1926 on Thursday the market rallied to 1941 today. Then, without getting too overbought, the market pulled back to SPX 1931. After that another rally began, taking the SPX to 1940. From the Minute iv SPX 1926 low, we are going to call today’s activity as follows: Micro 1 1941, Micro 2 1931, and Micro 3 underway.
Short term support remains at the 1929 pivot and SPX 1916-1919, with resistance at the 1956 and 1973 pivots. Short term momentum hit slightly overbought today, then vacillated around neutral. The short term OEW charts flip-flopped again today, ending positive, with the reversal level now SPX 1936. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market