SHORT TERM: new highs, DOW +92
Overnight the Asian markets gained 0.1%. Europe opened higher and gained 0.6%. US index futures were higher overnight, and at 9am Case-Shiller was reported higher: +4.5% v +4.3%. The market opened one point below yesterday’s SPX 2110 close, ticked up to 2111, then pulled back to 2106 by 10am. At 10am Consumer confidence was reported lower: 96.4 v 102.9, and FED chair Yellen testified before the Senate: http://www.federalreserve.gov/newsevents/testimony/yellen20150224a.htm. During the testimony the market rallied to SPX 2117 by 11:30. Then it pulled back to SPX 2109 by 12:30. After that the market made a new high at SPX 2118 before dipping to 2115 at the close.
For the day the SPX/DOW were +0.40%, and the NDX/NAZ were +0.10%. Bonds gained 24 ticks, Crude slipped 35 cents, Gold slid $2, and the USD was higher. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: New home sales, and FED chair Yellen addresses Congress at 10am.
The market opened slightly lower today, put in its low for the day within the first hour for the sixth day in a row, then moved higher for the rest of the day. The market made another new high today at SPX 2118, as it continues to rise from Friday’s 2085 low with small pullbacks along the way. One of the three short term counts posted over the weekend, the 30% probability #2, was eliminated today with Greece getting final approval for the 4 month loan extension. The 10% probability option #1, suggests the maximum upside for the uptrend is SPX 2145. It is still in play and we raise its probability to 20%. Option #3, at now an 80% probability, continues to look like the most obvious count. Short term support is at the 2085 and 2070 pivots, with resistance now at the 2131 and 2198 pivots. Short term momentum is now overbought. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market