SHORT TERM: volatile day, DOW +72
Overnight the Asian markets gained 0.4%. Europe opened lower and lost 1.6%. US index futures were lower overnight. Last night FED direction Van Der Weide’s testimony: http://www.federalreserve.gov/newsevents/testimony/vanderweide20150428a.htm was released. At 9am Case-Shiller was reported higher: +5.0% v +4.6%. The market opened one point below yesterday’s SPX 2109 close, ticked up to 2110, then started to pullback. At 10am Consumer confidence was reported lower: 95.2 v 101.3. Just past 10am the SPX hit 2095 and then started to rally. The rally continued until 1:30 when the SPX hit 2116. Then after a pullback to SPX 2111 by 2:30 the market bounced to close at 2115.
For the day the SPX/DOW were +0.35%, and the NDX/NAZ were -0.15%. Bonds lost 16 ticks, Crude added 5 cents, Gold rallied $10, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: Q1 GDP (est. +0.7%) at 8:30, Pending home sales at 10am, then the FOMC statement at 2pm.
The market opened about unchanged today then resumed yesterday’s pullback. At the low of the day the SPX had pulled back 31 points from yesterday’s SPX 2126 all time high. After the low the market rallied 21 points to SPX 2116. This now gives us five waves off last week’s SPX 2072 low: 2110-2091-2126-2095-2116. If the market is impulsing higher, in Minor wave 3, it should not drop below SPX 2095 during the rest of this uptrend. Short term support is at SPX 2095 the 2085 pivot, with resistance at the 2131 and 2198 pivots. Short term momentum hit quite oversold this morning, then rose to just above neutral. Best to your trading on the often volatile FOMC Wednesday!
MEDIUM TERM: uptrend
LONG TERM: bull market