Thursday, April 12, 2012

QE3 - Rally

Last night FED vice chair Yellen’s speech was released: 

Overnight the Asian markets were mostly higher gaining 0.8%. Europe opened higher and gained 1.1%. US index futures were higher overnight. At 8:30 weekly Jobless claims were reported higher: 380K vs 357K, the PPI was reported flat: 0.0% vs +0.4%, and the Trade deficit decreased: -$46.0 bln vs -$52.6 bln. The market opened 1 point above yesterday’s SPX 1369 close and immediately began to rally. Around 10:30 the market cleared the OEW 1372 pivot range and continued higher into the 1386 pivot range. 

At 3:30 FED governor Raskin’s speech was released:

The market continued to rally, without even as much as a 5 point pullback, right into the last hour of trading. Just before the close the SPX hit 1388 and closed there.

The first decline to tuesday’s low would have been wave A. 

And, wave B is underway now. 

Short term support is back to the OEW 1386 and 1372 pivots, with overhead resistance at SPX 1414, 1419 and 1422. Short term momentum ended the day quite overbought.