Thursday’s lift left the market with new highs on the year for the Nas Composite, Nas 100, S&P 500 and the Dow tapped a new high on the year, but didn’t close over 9630.20 8/28 intraday high, but did close at a new closing high on the year. Everyone of you know that doesn’t matter, the market is zooming along in small steps. I don’t get caught up on new highs intraday and closing, fact of the matter is we sit at resistance at lofty levels. September is buzzing and today made for five consecutive up days and 5 of the last 7 have been up for September.
Intraday we are overbought and very close on the daily to be overbought. I took a peak at the weekly charts, even though we still have one day yet to trade, everything is fine there other than we have a very flat stochastics in the mid 90’s. Friday the market has a lot to think about, will we shoot up another step to blow the week up, or will folks start to think profit taking. The market is like walking on ice, eventually you will slip. Some correction is due, but I keep saying it over and over, don’t pick a top. Keep it tight intraday and let the market guide us, I’m struggling with the opens we’ve had this week to get on board and stay there, but be persistent and hang in there. You wait for the right spot and sit until it comes and be patient when it arrives, is ALL we can do.
Data at 9:55 may slow that first half hour down, keep that range in mind as we get to 10 for direction. Semi’s continue to be strong and that daily chart is in the nosebleed section and in need of a rest. Banks are stuck in such a narrow range any move there will shake the SPX. Brokers left the banks behind and moved into new highs for the year and hardware joined the party at new highs for the year. Internets and Telecom had big days and also new highs on the year, internets (INX) have gapped up for three days and had big intraday moves this week. ANY of these sectors get a push down the indexes will take a breath. Until then the bulls are winning and taking charge to keep September moving up.
Economic data for the week (underlined means more likely to be a mkt mover): Friday 8:30 Import Prices, 9:55 Prelim UoM Consumer Sentiment, 9:55 Prelim UoM Inflation Expectations, 10:00 Wholesale Inventories, 2:00 Federal Budget Balance. Monday 12:30 FOMC Member Lacker Speaks, 3:50 FOMC Member Yellen Speaks, Tuesday 8:30 Core Retail Sales, 8:30 PPI, 8:30 Retail Sales, 8:30 Core PPI, 8:30 Empire State Manufacturing Index, 10:00 Business Inventories, 10:00 IBD/TIPP Economic Optimism, Wednesday 8:30 Core CPI, 8:30 CPI, 8:30 Current Account, 9:00 TIC Long Term Purchases, 9:15 Capacity Utilization Rate, 9:15 Industrial Production, 10:30 Crude Oil Inventories, 1:00 NAHB Housing Market Index, Thursday 8:30 Building Permits, 8:30 Unemployment Claims, 8:30 Housing Starts, 10:00 Philly Fed Manufacturing Index, 10:30 Natural Gas Storage, Friday nothing due out
Some earnings for the week (keep in mind companies can change last minute: Friday pre market HRB and nothing after the bell.
ES (S&P 500 e-mini) Friday’s pivot 1033.25, weekly pivot 1012. Intraday support: 1032.75, 1029, 1026, 1022.50-1021.75, 1019.25, 1015.75, 1013. Resistance: 1042.75, 1047, 1050, 1063.50
