SHORT TERM: volatile FOMC day, DOW +198
Overnight the Asian markets lost 0.3%. Europe opened higher and gained 1.2%. US index futures were higher overnight, and the market opened four points above yesterday’s SPX 2066 close. In the opening minutes the SPX dipped to 2067 then rallied to a new uptrend high at 2082 just past noon. After that the market dipped to SPX 2078 by 12:30 then drifted to an even higher high at 2085 just before the FOMC statement: http://www.federalreserve.gov/newsevents/press/monetary/20151028a.htm. After the statement was released the market immediately sold of to SPX 2063 within 15 minutes. After that pullback the market rallied to SPX 2090 where it closed.
For the day the SPX/DOW were +1.15%, and the NDX/NAZ were +1.10%. Bonds lost 23 ticks, Crude rallied $2.75, Gold dropped $9, and the USD rallied. Medium term support rises to the 2085 and 2070 pivots, with resistance at the 2131 and 2198 pivots. Tomorrow: Q3 GDP (est. +2.3%) and weekly Jobless claims at 8:30, then Pending home sales at 10am.
The market opened higher today, dipped, and then rallied to a new uptrend high right at the 2085 pivot. After the FOMC statement the market dropped to SPX 2063, and then rallied to a higher high into the close. At SPX 2085 the market had done the minimum required for Int. iii (a higher high), and five Minor waves. However, the market shrugged off the pullback and rallied to new highs into the close: Minor 5 is subdividing. Short term support rises to the 2085 and 2070 pivots, with resistance at SPX 2100 and the 2131 pivot. Short term momentum was quite overbought early, declined, then ended with a potential negative divergence. Best to your GDP trading!
MEDIUM TERM: uptrend
LONG TERM: bull market