SHORT TERM: first notable pullback of week, DOW -38
Overnight the Asian markets gained 0.1%. Russia moved its convoy across the Ukrainian border. Europe opened lower and lost 0.6%. US index futures were lower overnight, but the market opened unchanged at SPX 1992. After an initial drop to SPX 1987 the market rose as to 1994 just past 10am as FED chair Yellen’s Jackson Hole speech was released: http://www.federalreserve.gov/newsevents/speech/yellen20140822a.htm. Then the market pulled back again. By 11am the SPX hit 1985, got oversold short term, and tried to rally. The rally hit SPX 1992 three times in the afternoon, then the market ended at 1988.
For the day the SPX/DOW were -0.20%, and the NDX/NAZ were +0.15%. Bonds lost 4 ticks, Crude slipped 35 cents, Gold rose $3, and the USD was higher. Medium term support remains at the 1973 and 1956 pivots, with resistance at the 2019 and 2070 pivots. Last night the FED reported a record high in the Monetary base: $4.125tn v $4.121tn. Today the WLEI was reported lower: 52.8% v 53.6%.
The market opened unchanged today, dipped five points, rallied within one point of the SPX 1995 high, and then pulled back to 1985. After that it remained within that trading range for the rest of the day. We marked a Minute wave iii high at SPX 1995 during the second pullback, and are waiting to see if Minute iv ended at today’s 1985 low. When it does end, Minute v can rally to any level since Minute iii (53 pts) was longer than Minute wave i (36 pts).
Short term support is now at SPX 1985 and the 1973 pivot, with resistance at SPX 1995 and the 2019 pivot. Short term momentum dropped to oversold after being overbought all week, then bounced. The short term OEW charts flip-flopped today as the SPX 1988 reversal level was crossed several times. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market