SHORT TERM: FED still on hold, DOW +51
Overnight the Asian markets lost 0.1%. Europe opened higher and gained 0.5%. US index futures were lower overnight and the market opened six points below yesterday’s SPX 2092 close. Right after the open the market bounced back to 2092 before heading lower again. At 10am Pending home sales were reported higher: +1.4% v +3.5%. At 10:30 the SPX hit the low of the day at 2082, and then started to rally. At 12:30 the SPX hit 2091 and then drifted lower ahead of the FOMC statement. At 2pm the FED released: http://www.federalreserve.gov/newsevents/press/monetary/20160427a.htm. The market hit SPX 2085 right after the statement and then rallied. Around 3:30 the SPX hit 2100, then pulled back to close at 2095.
For the day the SPX/DOW gained 0.20%, and the NDX/NAZ lost 0.65%. Bonds gained 19 ticks, Crude rallied $1.30, Gold rose $3, and the USD was lower. Medium term support remains at the 2085 and 2070 pivots, with resistance at the 2131 pivot. Tomorrow: Q1 GDP and weekly Jobless claims at 8:30.
The market opened lower following poor earnings reports in the tech sector again. After a quick rebound the SPX then hit a low at 2082 by 10:30. After that the market rallied for the rest of the day, helped by a cut and paste FMOC statement, to SPX 2100. Despite today’s rally the market still looks a bit choppy. From the SPX 2111 high we had three waves down: 2081-2093-2078, and now three waves up: 2097-2082-2100. Another rally underway from SPX 2078? Or just more choppy activity? Short term support is at the 2085 and 2070 pivots, with resistance at SPX 2104 and SPX 2116. Short term momentum ended the day with a negative divergence. Trade what is in front of you.
MEDIUM TERM: uptrend
LONG TERM: bear market rally