SHORT TERM: gap up opening on volatile day, DOW +31
Overnight the Asian markets gained 0.4%. Europe opened higher but lost 0.7%. US index futures were higher overnight, and the market gapped up to SPX 2102 at the open. The SPX had closed at 2096 yesterday. In the opening minutes the SPX hit 2104, then the market started to pullback. The market continued to pullback into the afternoon, when the SPX hit 2089. Just before the FOMC statement the market started to rise: http://www.federalreserve.gov/newsevents/press/monetary/20150617a.htm, http://www.federalreserve.gov/newsevents/press/monetary/20150617b.htm. Right after the statement the market hit 2089 again, and then started to rally. After hitting SPX 2102 right after the statement, volatile market, the market pulled back to 2095 by 2:30, and then moved even higher. Just past 3pm the SPX hit 2107, then pulled back to close at 2100.
For the day the SPX/DOW were +0.20%, and the NDX/NAZ were +0.25%. Bonds gained 7 ticks, Crude slipped 10 cents, Gold gained $5, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: weekly Jobless claims and the CPI at 8:30, then the Philly FED and Leading indicators at 10am.
The market gapped up at the open to SPX 2102, hit 2104, then closed the gap and declined to 2089. After that the market fully retraced that entire decline and hit SPX 2107. This is typical FOMC day volatility. At the actual high for the day the SPX set up a short term negative divergence, and started to pullback. For now we continue to maintain the same count, while the market remains between SPX 2072 and 2115. Should the market move beyond SPX 2115, then some adjustment will be required to the short term count. Short term support is now at SPX 2099 and the 2085 pivot, with resistance at SPX 2118 and the 2131 pivot. Short term momentum ended the day with a negative divergence. Best to your Thursday trading!
MEDIUM TERM: downtrend
LONG TERM: bull market