SHORT TERM: turnaround Tuesday, DOW +113
Overnight the Asian markets lost 0.4%. Europe opened lower but gained 0.4%. US index futures were lower overnight. At 8:30 Building permits were reported higher: 1275k v 1143k, and Housing started were reported lower: 1036k 1135k. The market opened slightly lower at SPX 2082, and then started to rally. In the opening minutes the SPX hit 2091, then pulled back to 2083 just past 10am. Then the market moved higher. Just past 2pm the SPX hit 2097. Then it went sideways to close at SPX 2096.
For the day the SPX/DOW gained 0.60%, and the NDX/NAZ gained 0.50%. Bonds gained 11 ticks, Crude added 50 cents, Gold dipped $4, and the USD was higher. Medium term support rises back to the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: the FOMC meeting concludes and is followed by a press conference.
The market opened a bit lower today, after ES futures were down quite a bit overnight, and then began to rally. The rally cleared the 2085 pivot range, then climbed to the next resistance area near SPX 2099 (2097). Another sharp rally after a double bottom low. No change to the count as we await a third wave down to kick in soon. Markets are often volatile after/during the FOMC statement/press conference. Short term support rises back to the 2085 and 2070 pivots, with resistance at SPX 2099 and SPX 2118. Short term momentum rose to overbought during today’s rally, and ended there. Best to your trading!
MEDIUM TERM: downtrend
LONG TERM: bull market