SHORT TERM: gap up opening, DOW +91
Last night, just after the close, FED vice chair Fischer gave a speech: http://www.federalreserve.gov/newsevents/speech/fischer20151119a.htm. Overnight the Asian markets gained 0.5%. Europe opened higher and gained 0.1%. US index futures were higher overnight, heading into options expiration Friday, and the market gapped up at the open to SPX 2089. Just past 10am the SPX hit 2097 and then started to pullback. At 1pm FED governor Powell’s speech was released, lots of FED speak lately: http://www.federalreserve.gov/newsevents/speech/powell20151120a.htm. The pullback continued until just past 3pm, when the SPX hit 2085. After that the market bounced to SPX 2090, then dipped to close at 2089.
For the day the SPX/DOW gained 0.45%, and the NDX/NAZ gained 0.65%. Bonds lost 3 ticks, Crude slipped 10 cents, Gold slid $4, and the USD was higher. Medium term support rises to the 2085 and 2070 pivots, with resistance at the 2131 and 2145 pivots. Today the WLEI was reported higher: 47.4% v 47.1%.
The market gapped up at the open for the second day this week. In the first half hour of trading the market hit SPX 2097. Then it pulled back for the rest of the day. At the high there was a short term negative divergence, and momentum declined to neutral. Still, despite today’s pullback, there is no change in the count. Intermediate wave iii remains underway since Tuesday’s low at SPX 2046. After a 50+ point rise, there have not been any notable reversals to suggest a subdivision into Minor waves as of yet. Short term support is at the 2085 and 2070 pivots, with resistance at SPX 2116 and the 2131 pivot. Best to your weekend!
MEDIUM TERM: uptrend
LONG TERM: bull market