SHORT TERM: gap down opening then rally, DOW +20
Overnight the Asian markets lost 0.2%. Europe opened higher but lost 0.5%. US index futures were lower overnight, and at 8:30 weekly Jobless claims were reported higher: 295k v 294k. Then just before the open Congressional testimony from FED director Hunter: http://www.federalreserve.gov/newsevents/testimony/hunter20150423a.htm. The market gapped down at the open to SPX 2103, then rebounded to 2110 by 10am. Also at 10am Existing home sales were reported lower: 481k v 543k. The market then pulled back to SPX 2104 by 10:30, and then started to rally. The rally continued until just past 3pm when the SPX hit its all time high at 2120. After that the market pulled back to close at SPX 2113.
For the day the SPX/DOW were +0.20%, and the NDX/NAZ were +0.40%. Bonds gained 8 ticks, Crude rallied $1.35, Gold rose $8, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: Durable goods orders at 8:30.
The market gapped down at the open today after three successive gap up openings this week. The market made the low for the day at the open, SPX 2103, bounced around, then rallied to the all time high at 2120. The potential B wave triangle posted yesterday, was quickly eliminated when the SPX cleared resistance at 2112/2115. With the NDX/NAZ making new uptrend highs, it appears this uptrend may be extending. We still consider the rally from SPX 2046 in mid-March to be quite choppy and not impulsive looking. However, some within our group have suggested a failed Minor 2 flat at SPX 2046. Then a leading diagonal advance: 2089-2048-2108-2083-2012 for Minute i of Minor wave 3 , a Minute ii pullback to SPX 2073, and Minute iii underway now. Possible. If this market can extend higher tomorrow, the SPX 2100, DOW 18,000 and NDX 5,000 overhead resistance may finally have been broken. Short term support is at SPX 2112/2115 and the 2085 pivot, with resistance at SPX 2120 and the 2131 pivot. Short term momentum hit quite overbought at today’s high then dipped to near neutral into the close. Best to your trading!
MEDIUM TERM: still an uptrend
LONG TERM: bull market