SHORT TERM: choppy day with positive bias, DOW +25
Overnight the Asian markets gained 0.6%. Europe opened lower but gained 0.5%. US index futures were higher overnight, and the market opened 6 points above yesterday’s SPX 2083 close. At 10am FED Chair Yellen’s testimony was released: http://www.federalreserve.gov/newsevents/testimony/yellen20160621a.htm. The market then pulled back to unchanged around 10:30. After that it rallied to SPX 2091 by 11:30, pulled back to 2084 by 1:30, rallied to 2094 by 2:30. Also at 2:30 FED governor Powell: http://www.federalreserve.gov/newsevents/speech/powell20160621a.htm. The market then pulled back to close at SPX 2089.
For the day the SPX/DOW gained 0.20%, and the NDX/NAZ gained 0.20%. Bonds lost 8 ticks, Crude slipped 25 cents, Gold dropped $24, and the USD was higher. Medium term support rises to the 2085 and 2070 pivots, with resistance at the 2131 pivot. Tomorrow: FHFA housing at 9am, then Existing home sales at 10am.
The market opened higher today, pulled back to unchanged, rallied to SPX 2094, then closed where it had opened at 2089. After starting the week with a gap up opening to SPX 2101, the market has pulled back and gone into a trading range between the low 2080’s and low 2090’s. While it does look like a consolidation period after a 30 point ramp up, with the Br-vote on Thursday the SPX may just be on hold for now. Short term support rises to the 2085 and 2070 pivots, with resistance at SPX 2121 and the 2131 pivot. Short term momentum remained around neutral for most of the day. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: neutral