SHORT TERM: new uptrend high, DOW -13
Overnight the Asian markets were mixed. Europe opened higher but lost 0.3%. US index futures were lower overnight, and at 8:30 Building permits were reported lower: 1103K v 1170K, but Housing starts were higher: 1206K v 1126K. At 9:15 FED governor Powell’s speech: http://www.federalreserve.gov/newsevents/speech/powell20151020a.htm. The market opened three points below yesterday’s SPX 2034 close, dipped to 2028, then rallied to 2039 by 11am. At that time FED chair Yellen’s speech was released: http://www.federalreserve.gov/newsevents/speech/yellen20151020a.htm. The market then pulled back to SPX 2027 by 2pm. After that it worked its way higher to a SPX 2031 close.
For the day the SPX/DOW lost 0.10%, and the NDX/NAZ lost 0.50%. Bonds lost 14 ticks, Crude slipped 20 cents, Gold gained $7, and the USD was lower. Medium term support remains at the 2019 and 1973 pivots, with resistance at the 2070 and 2085 pivots. Tomorrow: no economic reports.
The market opened lower today, dipped, then rallied to a new uptrend high at SPX 2039. Running into the 2040 resistance level the market then dropped to 2027, before rebounding some into the close. With the SPX running into the expected resistance level, with an hourly negative divergence, we just may have observed the high of Minor wave 1 of Int. iii. The largest pullback from SPX 1991 may be next. Support is at the 2019 pivot and SPX 2000, with resistance at SPX 2040 and the 2070 pivot. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bull market