SHORT TERM: gap up and pullback, DOW +16
Overnight FED vice chair Fischer gave a speech: http://www.federalreserve.gov/newsevents/speech/fischer20140811a.htm. Asian markets gained 1.5%. Europe opened higher and gained 1.4%. US index futures were higher overnight, and the market gapped up at the open to SPX 1938. The SPX had closed at 1932 on Friday. The rally continued until 11:30 when the SPX hit 1945. Then a pullback to SPX 1936 followed by 2pm. After that the market traded in a 4 point range, and ended the day at SPX 1937.
For the day the SPX/DOW were +0.20%, and the NDX/NAZ were +0.65%. Bonds lost 2 ticks, Crude gained 25 cents, Gold slipped $3, 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 Budget deficit at 2pm.
The market gapped up at the open and continued to rally until it cleared the B wave high at SPX 1943. Then after hitting SPX 1945, forty points higher than Thursday’s low, it started to pullback. Clearing SPX 1943 suggests the Int. v uptrend is underway. Pullbacks during the early stages of an uptrend are usually limited to 9 to 12 pts. Thus far the pullback is 9 points. Should the market continue to pullback and get oversold we could mark this high as Minor wave 1. If the pullback is small it is probably only Minute wave i of Minor 1. Either way we expect the market to move higher once this pullback ends.
Short term support is at the 1929 and 1901 pivots, with resistance now at SPX 1945 and the 1956 pivot. Short term momentum hit extremely overbought this morning then declined. The short term OEW charts remain positive from SPX 1917 with the reversal level now 1933. Best to your trading!
MEDIUM TERM: uptrend probably underway
LONG TERM: bull market