SHORT TERM: market rebounds after yesterday's selling, DOW +83

Overnight the Asian markets were mostly higher. Europe opened higher and closed +0.90%. US index futures were also higher overnight. At 8:30 the PPI was reported lower -0.9% v +1.8%, and Housing starts were 581K v 587K. At the open the market was slightly higher and bounced around the 981 level before starting a rally. By 12:00 the SPX reached the OEW 990 pivot, and then went sideways in a three point range until 1:30. From SPX 987 at 1:30 the market tried to rally again, hit 991 and then closed at the 990 pivot. For the day the SPX/DOW were +0.95%, and the NDX/NAZ were +1.35%. Bonds were off 6 ticks, Crude rallied $2.25, Gold rose $3.00, and the Euro was higher. Support for the SPX remains at 961 and then 935, with resistance at 990 and then 1018. Short term momentum was slightly oversold early and rallied past neutral as the market rose. Tomorrow the economic slate is clear.

The market appeared to impulse today from the SPX 981 low. Overseas markets rebounded from monday's selling wave, Crude was strong, and the USD weakened. When the SPX clears the 990 pivot (998) we'll mark the end of Intermediate wave B at the low, and Intermediate wave C underway. Best to your trading!  

MEDIUM TERM: uptrend

LONG TERM: bear market

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