SHORT TERM: higher open, then pullback, DOW +85
Yesterday FED chair Yellen gave a speech: https://www.federalreserve.gov/newsevents/speech/yellen20171015a.htm. Overnight the Asian markets gained 0.6%. Europe opened higher and gained 0.1%. US index futures were higher overnight, and at 8:30 the NY FED was reported higher. The market opened at a new high, SPX 2559, and immediately began to pullback. By 12:30 the SPX had dropped 6 points to 2553, and then tried to rebound. Heading into the close the SPX hit 2558 and ended the session.
For the day the SPX/DOW gained 0.25%, and the NDX/NAZ gained 0.30%. Bonds lost 7 ticks, Crude rose 40 cents, Gold dropped $8, and the USD was higher. Medium term support remains at the 2525 and 2479 pivots, with resistance at the 2575 and 2594 pivots. Tomorrow: export/import prices at 8:30, industrial production at 9:15, then the NAHB at 10am.
The market continued its current routine, (sell-higher opens, buy-lower opens), this morning, as the market opened at a new all-time high then pulled back. The new high was marginal, only one point. And the pullback was minor, only six points. This gradual grind higher has been underway for the past 8 trading days. No change to the short term count, as the market appears to be waiting for a catalyst. With earnings season underway and options expiration on Friday, maybe we will see some definitive movement some time this week. Short term support is at the 2525 and 2479 pivots, with resistance at the 2575 and 2594 pivots. Short term momentum continues to display a negative divergence. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: uptrend