SHORT TERM: pullback continues, DOW -82
Overnight the Asian markets gained 0.6%. Europe opened higher and gained 0.5%. US index futures were lower overnight, and at 8:30 Q2 GDP was reported lower: +2.2% v +2.6%. The market opened one point below yesterdays SPX 2111 close, ticked up to 2012, dipped to 2006, and then tried to rally. At 9:45 the Chicago PMI was reported lower: 45.8 v 54.9. At 10am Consumer sentiment was reported higher: 95.4 v 93.6, and Pending home sales were higher: +1.7% v -3.7%. Around 12:30 the SPX hit 2113 and then started to pullback. At 1:30 FED vice chair Fischer’s speech was released: http://www.federalreserve.gov/newsevents/speech/fischer20150227a.htm. Heading into the close the SPX hit 2104 and closed there.
For the day the SPX/DOW were -0.40%, and the NDX/NAZ were -0.45%. Bonds gained 3 ticks, Crude rose $1.05, Gold added $3, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Today the WLEI was reported lower: 45.5% v 45.7%.
The market opened lower again today, bounced around in the first few minutes, hit SPX 2106, then rallied to 2113 just past noon. After that it pulled back for the rest of the day, retesting yesterday’s low at SPX 2104. This entire week traded in a 17 point range. Nothing to add to yesterday’s report, except that the USD was quiet and Crude rallied. We will cover all the potential short term counts in the weekend update. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market