Thursday left the day red across the broader markets on mixed volume. The NYSE had lighter volume while the Nasdaq and futures were heavier volume. The Nasdaq closed as the weakest index with that distribution day. The VIX closed at 23.73 (8% off 10dma) and the TRIN closed bullish at .76. The A/D and U/D lines sat negative throughout the day and closed on or near the lows. Gold closed down $10.00 to $1074.50 and oil down 3 cents to $73.64 a barrel.
After the bell earnings came in strong and left MSFT up, JNPR up, AMZN up (after first dropping), KLAC down, MXIM up, RMBS down, PMCS up. The market still has that sell the news mentality going on and we can’t seem to shake it. However, seeing MSFT and AMZN trading up could alter that tone in the morning. Closing on the lows and starting to come out of this bear flag that we’ve been watching this week on the daily charts are letting this market see a deeper correction.
The NQ dropped 1786.50 and didn’t quite get to our 1756.75 target, we sat just 2.5 points off that support. With the weight on the NQ the ES lost ground and held just over 1075.25 support on the close. Banks held green on the day and brokers closed better than the tech sector’s but wasn’t able to close green. A weak open on Friday maybe what we need to exhaust the weeks fall and let some retracement come in on the final trading day of the month. At this point the week will close red, but a big reversal would change that, the range has been very narrow and digestive this week. Volume should stay healthy with it being the last day of the month and all the data we have into 10:00.
Economic data for the week (underlined means more likely to be a mkt mover): Friday 8:30 Advance GDP, 8:30 Advance GDP Price Index, 8:30 Employment Cost Index, 9:45 Chicago PMI, 9:55 Revised UoM Consumer Sentiment, 9:55 Revised UoM Inflation Expectations. Monday 8:30 Core PCE Price Index, 8:30 Personal Spending, 8:30 Personal Income, 10:00 ISM Manufacturing PMI, 10:00 Construction Spending, 10:00 ISM Manufacturing Prices. Tuesday 10:00 Pending Home Sales, Vehicle Sales all day. Wednesday 7:30 Challenger Job Cuts, 8:15 ADP Non Farm Employment Change, 10:00 ISM Non Manufacturing PMI, 10:30 Crude Oil Inventories. Thursday 8:30 Unemployment Claims, 8:30 Prelim Nonfarm Productivity, 8:30 Prelim Unit Labor Costs, 10:00 Factory Orders, 10:30 Natural Gas Storage. Friday 8:30 NonFarm Employment Change, 8:30 Unemployment Rate, 8:30 Average Hourly Earnings, G7 Meetings, 3:00 Consumer Credit m/m. Saturday G7 meetings continue.
Some earnings for the week (keep in mind companies can change last minute: Friday pre market CVX, FO, HON, MAT, NS, and nothing after the bell. Monday pre market XOM, HUM, SOHU, and after the bell APC, TUP. Tuesday pre market ADM, BP, COCO, CMI, DOW, DHI, HSY, KFT, LXK, MAN, MRO, SU, UTI, UPS, and after the bell ACE, AFL, JDSU, MEE, MET, NWSA, QSFT, RENT, SSD, TSO, VASC, VRSN. Wednesday pre market ATMI, CMCSA, HNT, IP, ITG, NOV, PFE, RL, R, SGP, SLAB, TWX, TZOO, and after the bell NDN, AFFX, AKAM, BBBB, CELL, BRCM, CSCO, ONNN, OHB, SSTI, SPF, STLD, THQI, V, YUM. Thursday pre market BCRX, BG, CI, CLX, CME, ITWO, K, MA, MF, PENN, PAS, SLE, SNE, HOT, and after the bell ATVI, MCHP, SUN, VARI. Friday pre market AET, BZH, BRKS, BZH, TSN, WY, YRCW and nothing after the bell.
NQ (Nas 100 e-mini) Friday’s pivot 1778, weekly pivot 1827.50. Support: 1768.50, 1757.50-1756.75, 1742.25, 1739.75, 1734, 1731.75. Resistance: 1783, 1790.50, 1797.75, 1808.25, 1811.75 38.2%, 1827.75, 1843.75, 1855.75, 1866.50, 1874
