SHORT TERM: gap down opening then choppy, DOW -252
Overnight the Asian markets lost 0.5%. Europe opened higher, but lost 0.6%. US index futures were lower overnight, and at 8:30 Q4 GDP was reported lower: +2.6% v +5.0%. The market gapped down at the open to SPX 2010, rallied to 2019 in the opening minutes, then headed lower. At 9:45 the Chicago PMI was reported higher: 59.4 v 58.3, then at 9:55 Consumer sentiment was reported lower: 98.1 v 98.2. The pullback continued until 11:30 when the SPX hit 2000. After that it rallied to SPX 2016 by 12:30, pulled back to 2005 by 1:30, rallied to 2023 by 2:30, then started to decline again. At 12:45 FED governor Tarullo’s speech was released: http://www.federalreserve.gov/newsevents/speech/tarullo20150130a.htm. Heading into the close the SPX hit 1993, then bounced to close at 1995.
For the day the SPX/DOW were -1.35%, and the NDX/NAZ were -0.90%. Bonds gained 26 ticks, Crude rallied $3.05, Gold rose $27, and the USD was lower. Medium term support drops back to the 1973 and 1956 pivots, with resistance at the 2019 and 2070 pivots. Today the WLEI was reported higher: 45.7% v 45.0%.
The market gapped down at the open, rallied, then made a low at SPX 2000. After that it rallied in three waves to SPX 2023 before heading even lower into the close. Another choppy day while hitting the SPX 1988/1993 area for the fourth time this month. We have a lot to cover in the weekend update. But if you have been keeping track of the daily reports you should be fairly up to date. Best to your weekend!
MEDIUM TERM: downtrend
LONGN TERM: bull market