SHORT TERM: market closes higher in quiet trading, DOW +44

Overnight the Asian markets open were mostly higher. Europe opened flat and closed flat. US index futures were higher overnight but the market opened relatively unchanged at SPX 874. It then bounced around for about a half hour until the economic reports were released at 10:00. ISM manufacturing was 40.1% v 36.3%, Factory orders were -0.9% v +0.7% and Consumer sentiment rose to 65.1% v 61.9%. The SPX pulled back to 866 by 10:30 and then rallied to its best levels of the day at 880 by 1:30. Around that time the monthly Auto sales started hitting the tape: Ford -31.6%, GM -33.2% and C -48.0%. The market started heading lower on the news. At 2:00 the FED made the following announcement: http://www.federalreserve.gov/newsevents/press/monetary/20090501a.htm. Heading into the close the market held its own in a generally lackluster May Day friday. At the close the SPX/DOW were +0.55%, and the NDX/NAZ were +0.15%. Bonds lost 4 ticks, Crude gained $1.60, Gold slipped $5.00, and the Euro was higher. Support remains at SPX 848 and then 789, with resistance at 912 and then 935. Short term momentum finished around neutral. The short term negative bias remains, but the market only dropped a few points lower than yesterdays low. Will take a closer look this weekend. Best to yours!

MEDIUM TERM: uptrend

LONG TERM: bear market

CHARTS: http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID1606987