SHORT TERM: consolidation day, DOW -12
Overnight the Asian markets gained 0.4%. Europe opened lower and lost 0.3%. US index futures were lower overnight, but the market opened two points above Friday’s SPX 2108 close and continued to move higher. At 10am Existing home sales were reported higher: 4.88mn v 4.82mn. Just past 10am the SPX hit 2115 and started to pullback. At 12:30 FED vice chair Fischer’s speech was released just as the SPX hit 2109: http://www.federalreserve.gov/newsevents/speech/fischer20150323a.htm. The pullback lasted for the rest of the day, as the SPX bounced to 2114 by 2:30, then declined to close at 2104.
For the day the SPX/DOW were -0.10%, and the NDX/NAZ were -0.30%. Bonds gained 6 ticks, Crude rose 75 cents, Gold added $7, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: the CPI at 8:30, FHFA housing prices at 9am, then New home sales at 10am.
The market opened higher today, rallied to SPX 2115 just past 10am, then went into a choppy pullback mode for the rest of the day. The gap opening streak ended at seven days, and the alternation between up and down days looked like it was ending until the close. The short term wave pattern posted over the weekend remains the same. A notable pullback is underway, but the SPX will have to drop below 2095 to suggest Micro wave 3 ended at today’s high. Short term support is at the 2085 and 2070 pivots, with resistance at SPX 2107 and SPX 2115. Short term momentum ended the day oversold. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market