Friday delivered an up day across the broader markets, with the SPX +.48%, Dow +.45%, NDX +.32%, RUT +.28% and COMPX +.28%. Futures were an inside day in a very narrow range, certainly not an exciting Friday. Volume fell off again to close out the shortened week. The week closed on the highs with a modest gain. The TRIN closed at .77 bullish on the day and the VIX at 21.99 closing under the 200dma for the third day. Gold fell $2.90 to $1248 an ounce and oil rallied $2.14 to $76.39 a barrel.
The Nas composite sits just under the 200dma and still has an open gap at 2277.17 from August 10th. The Nas 100 has 1899.24 gap open and is into the upper Bollinger band on the daily chart. The S&P 500 sits into 1110.11 78.6% and 1115.63 200dma just overhead. The Dow spent the entire week into the 200dma and closed just 11 points over it. The Dows next task is to stay over the 200dma and onto 10552.60 resistance.
Futures narrow range inside day on Friday leaves us with a range to break. The ES closing over 1103 leave us to look for 1115 and to stay over 1103 now for that leg up. Staying over 1103 would be the easy road to the next leg up, but we could see the ES retrace to 1093.25-1089.50 support first. The NQ closed over 1877.50 for the second day and still leaves us looking to break 1895.50 and onto 1914.75. Keeping over 1877.5 will make that road a lot easier. A drop of 1877.5 and onto 1860.75 for support.
Economic data for the week (underlined means more likely to be a mkt mover): Monday 2:00 Federal Budget Balance. Tuesday 8:30 Core Retail Sales, 8:30 Retail Sales, 10:00 Business Inventories, 10:00 IBD/TIPP Economic Optimism. Wednesday 8:30 Empire State Manufacturing Index, 8:30 Import Prices m/m, 9:15 Capacity Utilization Rate, 9:15 Industrial Production, 10:30 Crude Oil Inventories. Thursday 8:30 PPI, 8:30 Unemployment Claims, 8:30 Core PPI, 8:30 Current Account, 9:00 TIC Long Term Purchases, 10:00 Philly Fed Manufacturing Index, 10:30 Natural Gas Storage. Friday 8:30 Core CPI, 8:30 CPI, 9:55 Prelim UoM Consumer Sentiment, 9:55 Prelim UoM Inflation Expectations, 11:30 FOMC Member Tarullo Speaks.
Some earnings for the week (keep in mind companies can change last minute: Monday pre market MTRX and after the bell GCOM. Tuesday pre market BBY, KR and after the bell MDZ, PLL. Wednesday pre market nothing due out and after the bell AIR, APOG. Thursday pre market DFS, FDX, PIR, SMTS and after the bell CKR, ORCL, RIMM. Friday nothing due out.
