SHORT TERM: gap up opening faded, DOW +95
Last night FED chair Yellen gave a speech on the economy and FED policy: https://www.federalreserve.gov/newsevents/speech/yellen20170119a.htm. Overnight Asian markets lost 0.5%. European markets opened lower but gained 0.1%. US index futures were higher overnight, and the market gapped up at the open to SPX 2273. The SPX had closed at 2264 yesterday. In the opening minutes the market rallied to SPX 2277, and then started to pullback. At 1pm the SPX hit 2265, bounced to 2271 by 1:30, then hit 2265 again at 2:30. After that the market worked its way higher to close at SPX 2271.
For the day the SPX/DOW gained 0.40%, and the NDX/NAZ gained 0.25%. Bonds gained 1 tick, Crude rallied $1.05, Gold added $3, and the USD was lower. Medium term support rises to the 2270 and 2212 pivots, with resistance at the 2286 and 2321 pivots. Today the WLEI was reported at 62.0% v 61.9%. And we have a new POTUS.
The market gapped up at the open for the first time since January 4th. But unlike that day the market did not hold its early gains, and pulled back minutes after the opening. The high of the day was the upper range of the OEW 2270 pivot (2277). A fairly quiet week as the entire range for the 4 days was SPX 2258-2277, with the entire range occurring between Thursday afternoon and Friday morning. The DOW slightly outperformed the other major indices today, but continues to lag. Another quiet week in the market, just like last week. Short term support rises to the 2070 pivot and SPX 2254, with resistance at the 2286 and 2321 pivots. Short term momentum hit overbought again early, then declined to neutral. Best to your weekend!
MEDIUM TERM: downtrend underway?
LONG TERM: uptrend