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7月23日 thursday updateSHORT TERM: SPX breaks through 961 pivot, rally continues, DOW +188
Overnight the Asian markets were all higher. Europe opened lower but closed +2.00%. US index futures were higher overnight and at 8:30 the weekly Jobless claims were reported at 554K v 524K. The market opened relatively flat at SPX 953 but immediately started to rally. At 9:30 FED governor Tarullo's testimony was released: http://www.federalreserve.gov/newsevents/testimony/tarullo20090723a.htm. At 10:00 Existing homes sales were reported at 489K v 472K. The market continued to rally breaking through the OEW 961 pivot by about 10:30. By 1:30 the SPX hit 979 and is now approaching the OEW 990 pivot. The market pulled back only a few points over the next half hour, and then hit the highs again before pulling back some into the close. For the day the SPX/DOW were +2.25%, and the NDX/NAZ were +2.40%. Bonds dropped over one point, Crude rallied $1.75, Gold slipped $3.00, and the Euro was flat. Support for the SPX now notches up to 961 and then 935, with resistance at 990 and then 1018. Short term momentum is again extremely overbought. Tomorrow, UofM Consumer sentiment reading at 10:00.
This rally from the SPX 869 low continues as it now has extended to 110 SPX points in just over two weeks. Short term negative divergences continue to be ignored. The rally still appears to be wave A of an ABC uptrend. A 50 point pullback can occur at any time. Best to your trading!
MEDIUM TERM: uptrend
LONG TERM: bear market
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