SHORT TERM: gap down opening then rebound, DOW -18
Overnight the Asian markets gained 0.6%. Europe opened higher and gained 0.5%. US index futures were lower overnight. At 8:30 Housing starts were reported lower: 1065k v 1089k, Building permits higher: 1053k v 1032k, and the PPI lower: -0.8% v -0.3%. Then at 9:15 Industrial production was reported higher: +0.2% v -0.1%. The market gapped down at the open to SPX 2095 then drifted lower. The SPX had closed at 2100 yesterday. Around 10:30 the SPX hit 2092, then rallied to 2100 right after the FOMC minutes were released: http://www.federalreserve.gov/monetarypolicy/fomcminutes20150128.htm. After a pullback to SPX 2094 by 2:30 the market rallied to close at 2100 again.
For the day the SPX/DOW were -0.05%, and the NDX/NAZ were +0.15%. Bonds gained 21 ticks, Crude dropped $1.95, Gold added $3, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2199 pivots. Tomorrow: weekly Jobless claims at 8:30, then the Philly FED and Leading indicators at 10am.
The market gapped down at the open today, dipped to SPX 2092, then traded between 2094-2100 for the rest of the day. The market did post a nine point pullback from yesterday’s SPX 2101 high, dropping short term momentum below neutral. This was enough to generate another wave in our short term count from SPX 2042. We now have six waves up and appear to be in the seventh. Short term support is at SPX 2092 and the 2070 pivot, with resistance at SPX 2001 and the 2131 pivot. Short term momentum dropped below neutral, then ended the day slightly overbought. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market