SHORT TERM: lower open than rally again, DOW +27
Overnight the Asian markets gained 0.4%. Europe opened higher and gained 0.3%. US index futures were higher overnight, then dropped after the 8:30 economic reports. The CPI was higher: +0.4% v +0.3%, Building permits were lower: 991k v 1080k, and Housing starts were lower: 1001k v 1072k. The market opened 4 points below yesterday’s SPX 1938 close, bounced around a bit, then started to rally. At 10am the SPX hit 1942, pulled back to 1935 by 11am, and then headed higher again. At 2:30 the SPX hit 1944, then pulled back to close at 1942.
For the day the SPX/DOW were +0.20%, and the NDX/NAZ were +0.20%. Bonds lost 15 ticks, Crude slipped 60 cents, Gold dipped $1, and the USD was higher. Medium term support remains at the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Tomorrow: the FOMC statement at 2pm, and press conference at 2:30.
The market opened lower again today. Then just like yesterday made a low in the opening minutes, rallied in the first hour, pulled back in the second hour, and then moved higher into the afternoon. The market continues to move higher from yesterday’s SPX 1931 low, hitting 1944 today. Just 12 points below the all time high. The Micro wave 1-2-3 count noted yesterday remains the same: 1941-1931-1944. FOMC tomorrow and then the press conference. Should be interesting.
Short term support is at the 1929 pivot and SPX 1916-1919, with resistance at the 1956 and 1973 pivots. Short term momentum ended the day just below overbought. Short term OEW charts flip-flopped again today, ending positive, with the reversal level now SPX 1939. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market