thursday morning
SHORT TERM: China raises their key lending rate 1/4%.
Crazy morning! Overnight everything looked normal, the Asian markets were generally higher. After the close China's NDRC (their FED) raised their key lending rate 1/4% to 5.85%, their first increase since 2004. This was in response to their economy growing at a stronger than expected 10.2% rate. Slightly above their anticipated 10% targeted rate. Also, loan demand for economic expansion exceeded expectations by nearly 100% in the first quarter. We should have such problems! Europe reacted to the news by selling off and came in over 1% lower. Following their their lead we gapped down at the open in an attempt to test the lower EW pivots: SPX 1292, NDX 1684 and NAZ 2300.
At 10AM Fed Chairman Bernanke spoke before Congress, stating that the FED will now take a look and see approach to dealing with inflation, rather than raising rates at every meeting. But he emphasized that if they stop for a meeting or two it does not mean that they are done. The market reversed immediately on the news.
Thus far this morning, we made the lows around 9:45 AM and then went on a torrid rally till about 10:15 AM. Right now we're off the highs but rising again after a pullback. Short term momentum is around neutral and additional positive divergences have set up. It would be nice to see a trending market again. As of this moment the stock indices are right about where they closed on friday! Still optimistic short term.
INTERMEDIATE TERM: uptrend
LONG TERM: bullish
SHORT TERM: China raises their key lending rate 1/4%.
Crazy morning! Overnight everything looked normal, the Asian markets were generally higher. After the close China's NDRC (their FED) raised their key lending rate 1/4% to 5.85%, their first increase since 2004. This was in response to their economy growing at a stronger than expected 10.2% rate. Slightly above their anticipated 10% targeted rate. Also, loan demand for economic expansion exceeded expectations by nearly 100% in the first quarter. We should have such problems! Europe reacted to the news by selling off and came in over 1% lower. Following their their lead we gapped down at the open in an attempt to test the lower EW pivots: SPX 1292, NDX 1684 and NAZ 2300.
At 10AM Fed Chairman Bernanke spoke before Congress, stating that the FED will now take a look and see approach to dealing with inflation, rather than raising rates at every meeting. But he emphasized that if they stop for a meeting or two it does not mean that they are done. The market reversed immediately on the news.
Thus far this morning, we made the lows around 9:45 AM and then went on a torrid rally till about 10:15 AM. Right now we're off the highs but rising again after a pullback. Short term momentum is around neutral and additional positive divergences have set up. It would be nice to see a trending market again. As of this moment the stock indices are right about where they closed on friday! Still optimistic short term.
INTERMEDIATE TERM: uptrend
LONG TERM: bullish
