SHORT TERM: choppy day, DOW +27
Overnight the Asian markets gained 1.7%. Europe opened lower and lost 0.5%. US index futures were higher overnight, and at 8am FED governor Powell’s speech was released: http://www.federalreserve.gov/newsevents/speech/powell20150408a.htm. The market opened four points above yesterday’s SPX 2076 close and rallied to 2087 by 10am. Then the market pulled back sharply to SPX 2074 by 10:30, rallied to 2084 by 11:30, then pulled back to 2073 just after the FOMC minutes were released at 2pm: http://www.federalreserve.gov/newsevents/press/monetary/20150408a.htm. The market then spiked to SPX 2086 by 2:30, down to 2078 by 3pm, then closed at 2082.
For the day the SPX/DOW were +0.20%, and the NDX/NAZ were +0.80%. Bonds lost 2 ticks, Crude dropped $3.10, Gold slid $7, and the USD was higher. Medium term support remains at the 2070 and 2019 pivots, with resistance at the 2085 and 2131 pivots. Today the MMIS was reported higher: 58.6% v 58.3%. Tomorrow: weekly Jobless claims at 8:30, then Wholesale inventories at 10am.
The market opened higher today, after yesterday’s afternoon decline. After a rally to SPX 2087 it then went into a chop-chop mode: 2074-2084-2073-2086-2078, for the rest of the day. From last Wednesday’s SPX 2048 low we have: 2063-2054-2072-2057-2090. And from yesterday’s SPX 2090 high we have: 2076-2087-2074-2084-2073-2086. Just a lot of choppy action basically remaining between the 2070 and 2085 pivot ranges lately. Still waiting for the market to push lower one more time after this choppy action concludes. Short term support is at the 2070 pivot and SPX 2046/48, with resistance at the 2085 pivot and SPX 2115. Short term momentum bounced from yesterday’s oversold condition to neutral during the day. Best to your trading in this day traders market!
MEDIUM TERM: still an uptrend
LONG TERM: bull market