SHORT TERM: gap up opening to new high, DOW +109
Overnight the Asian markets gained 0.7%. Europe opened higher and gained 0.8%. US index futures were higher overnight. At 8:30 weekly Jobless claims were reported lower: 280k v 315k, Housing starts were reported lower: 956k v 1093k, and Building permits were lower: 998k v 1052k. Then at 8:15 FED chair Yellen’s speech was released: http://www.federalreserve.gov/newsevents/speech/yellen20140918a.htm. The market gapped up at the open, for the first time in two weeks, to SPX 2008. After a small dip to SPX 2005 it rallied to 2012 just before 11am. At 10am the Philly FED was reported lower: 22.5 v 28.0. After the SPX 2012 high the market entered a 4 point trading range (2008-2012) for the rest of the day, closing at 2011.
For the day the SPX/DOW were +0.60%, and the NDX/NAZ were +0.70%. Bonds lost 11 ticks, Crude dropped $1.25, Gold added $3, and the USD was lower. Medium term support remains at the 1973 and 1956 pivots, with resistance at the 2019 and 2070 pivots. Tomorrow: the somewhat interesting Scotland independence vote, Leading indicators 10 am, the much awaited BABA IPO, and it’s OPEX day. This wild fundamental data week draws to a close.
The market gapped up at the open today, dipped a bit, then hit a marginal new all time high. The new high was the signal we had been waiting for to suggest an uptrend extension. At the new high we upgraded the count on the SPX hourly chart from five Minor waves up to SPX 2011, to just Minor waves 1 and 2 complete at SPX 2011 and 1979 with Minor 3 now underway. We had been carrying this count on the SPX daily chart. Minor wave 3 should now unfold in five Minute waves, and the OEW 2070 pivot looks like a good target. Short term support is at SPX 2000 and SPX 1993, with resistance at the 2019 and 2070 pivots. Short term momentum continues to display a negative divergence. Best to your OPEX trading!
MEDIUM TERM: uptrend
LONG TERM: bull market