SHORT TERM: gap up opening, DOW +113
Yesterday, after the close, FED chair Yellen gave the following speech: http://www.federalreserve.gov/newsevents/speech/yellen20150924a.htm. Overnight the Asian markets gained 0.8%. Europe opened higher and rallied 2.9%. US index futures were higher overnight, and at 8:30 Q2 GDP was reported higher: +3.9% v +3.7%. The market gapped up at the open to SPX 1950, then pulled back to 1942 by 10:30. At 10am Consumer sentiment was reported higher: 87.2 v 85.7. After the pullback the market rallied back to SPX 1950 by 11am, dipped to 1943 by 12:30, then hit the high of that day at exactly 1953 just past 1pm. After that the market dropped straight down to SPX 1922 just past 3pm, then rallied to 1935, before closing at 1931.
For the day the SPX/DOW were mixed, and the NDX/NAZ were -0.90%. Bonds lost 9 ticks, Crude gained 65 cents, Gold dropped $7, and the USD was higher. Medium term support remains at the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Today GDPn was reported lower: +1.4% v+1.5%, and the WLEI was reported higher: 48.1% v 47.8%.
Wild day! The market gapped up at the open for the second time this week (Monday and Friday). It then hit the SPX 1953 level we noted yesterday, and immediately dropped 31 points to close the gap and turn negative on the day. After that it rallied to SPX 1935. This week’s decline to SPX 1909, rally to 1953, then decline again, set up some nice market parameters going forward. Will elaborate further on this in the weekend update. Short term support is at the 1929 and 1901 pivots, with resistance at the 1956 and 1973 pivots. Short term momentum dropped from overbought to below neutral where it ended the week. Best to your weekend!
MEDIUM TERM: downtrend
LONG TERM: bull market