SHORT TERM: FOMC day, DOW -31
Overnight the Asian markets gained 1.2%. Europe opened higher and gained 0.3%. US index futures were lower overnight, but moved back up as the market opened unchanged at SPX 1985. After the open the market rallied to SPX 1991, and then started to drift lower ahead of the FOMC statement. At 2pm the market was trading at SPX 1981 when it was released: http://www.federalreserve.gov/newsevents/press/monetary/20141029a.htm. Suggest you read it. After the release the market dropped to SPX 1972, bounced to 1978, then dropped to 1969, before rallying back to 1980 by 2:30. Typical FOMC statement volatility. Then just before 3pm the SPX hit 1973, bounced to 1978 by 3pm, then dropped to 1971 just after 3pm. After that the market started to recover. At 3:30 the SPX hit 1984, then dipped to close at 1982.
For the day the SPX/DOW were -0.15%, and the NDX/NAZ were -0.35%. Bonds lost 16 ticks, Crude gained 90 cents, Gold dropped $17, and the USD was higher. Medium term support remains at the 1973 and 1956 pivots, with resistance at the 2019 and 2070 pivots. Tomorrow: Q3 GDP (est. +2.5%) and weekly Jobless claims at 8:30. Then a speech from FED chair Yellen at 9am.
The market opened unchanged today, rallied to SPX 1991, then dropped to 1969 after the FOMC statement. Today’s decline was the largest since the pullback from 1869-1835 very early in this uptrend. While it was a large pullback, it did not drop below yesterday’s SPX 1964 level. So the higher lows, and equal/higher highs, streak extends to ten days. Despite today’s higher high at SPX 1991 our count remains unchanged. Short term support is at the 1973 and 1956 pivots, with resistance at SPX 1991 and SPX 2000. Short term momentum dropped to neutral after today’s negative divergence at the highs. Q 3 GDP tomorrow, best to your trading!
MEDIUM TERM: Major B makes new high
LONG TERM: bull market