SHORT TERM: another wild FOMC day, DOW +98
Overnight the Asian markets lost 0.1%. Europe opened higher and gained 0.1%. US index futures were relatively flat overnight, and the market opened one point above yesterday’s SPX 1942 close. After a dip to SPX 1942 the market rose to 1945 by 10am. The market pulled back to SPX 1939 by 11am, then bounced around heading into the FOMC statement: http://www.federalreserve.gov/newsevents/press/monetary/20140618a.htm. The market hit SPX 1946 just after the release, pulled back to 1940 a few minutes later, then headed higher. The FED also released this just past 2pm: http://www.federalreserve.gov/newsevents/press/monetary/20140618b.htm. Heading into the close the SPX hit an all time high at 1958, then dipped to close at 1957.
For the day the SPX/DOW were +0.70%, and the NDX/NAZ were +0.60%. Bonds gained 19 ticks, Crude slipped 10 cents, Gold added $4, and the USD was lower. Medium term support rises to the 1956 and 1929 pivots, with resistance at the 1973 and 2019 pivots. Tomorrow: weekly Jobless claims at 8:30, then the Philly FED and Leading indicators 10am.
The market did its usual daily routine today: flat to lower open, rally in first hour, pullback in second hour, then rally higher in the afternoon. Today’s early choppy action was resolved to the upside a few minutes after the FOMC statement was released. From the Minute iv SPX 1926 low we continue to count three Micro waves for Minute v: 1941-1931-1958. Anticipating a pullback soon for Micro 4, then a rally to higher highs to end Micro 5/Minute v/Minor 3.
Short term support rises to the 1956 and 1929 pivots, with resistance at the 1973 and 2019 pivots. Short term momentum ended the day quite overbought. The short term OEW charts remain positive with the reversal level now SPX 1944. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market