SHORT TERM: gap up and go options expiration, DOW +169
Overnight the Asian markets lost 0.2%. Europe opened higher and gained 1.0%. US index futures were higher overnight, and the market gapped up to SPX 2098 at the open. The SPX had closed at 2089 yesterday. The rally continued higher with only a three point pullback into the afternoon. At noon the FED released this statement: http://www.federalreserve.gov/newsevents/press/other/20150320a.htm. At 1:30 the SPX hit 2114, then started to pullback. By 3:30 the SPX had reached 2108. Then a bounce to SPX 2112 in the last few minutes led to a close at 2108.
For the day the SPX/DOW gained 0.90%, and the NDX/NAZ gained 0.70%. Bonds gained 16 ticks, Crude rose 85 cents, Gold added $12, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Last night the FED reported an increase in the Monetary base: $4.144tn v $3.807tn. Today the WLEI was reported higher: 46.3% v 46.0%.
The market gapped up at the open for the seventh gap opening in a row. The market opened one point above yesterday’s high and continued to rally into the afternoon. Since SPX 2081 was never approached the impulsive pattern upwards continues. No change in the short term count, as we see a Minute i-ii, and a 1-2-3 of Minute iii still underway. Also of note: the SPX closed above 2100, the DOW above 18,000 and the NAZ above 5,000. Short term support now rises to SPX 2107 and the 2085 pivot, with resistance at SPX 2120 and the 2131 pivot. Short term momentum hit quite overbought today before pulling back. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market