Monday traded higher erasing Thursday’s losses and closed at a new 52 week high. The volume was still very light but higher than the last eight days have been. The TRIN closed at .62 bullish and the VIX at 20.04, right on the 10dma. Strong market breadth throughout the day never wavered on who was in charge throughout the day. Gold closed up $23.20 to $1119.50 and oil up $2.13 to $81.49 a barrel.
Another gap and go move that put the bulls in charge. Economic data came in healthy and kicks off the week which is full of data. Indicators on the daily charts turned up with the move today and keeps the moving averages in bullish order. Thursday’s fall helped pull the 10dma and 20dema closer, but today boosted the markets right back up and keeps some distance there. The market continues to trend higher and nothing seems to be taking the air out for long.
However, the strong close still leaves the market in need of correction that just isn’t coming our way. The market is going to have to look forward to the job’s data and see more participation as the week continues. Also earnings pick up in a week, which will become a focus as this week continues. Can the market continue this run on the rally horse with earnings coming is the big question. Job’s data is likely to be stable this week and barring any surprises the bulls will have to find some buyers and charge the resistance overhead or let us pullback ahead of earnings season. I’m leaning to the pullback into mid next week as we sit now and unless some big shock comes from any data this week we should keep looking for shallow pullbacks and creeping higher.
Economic data for the week (underlined means more likely to be a mkt mover): Tuesday 10:00 Pending Home Sales, 10:00 Factory Orders, All Day vehicle Sales. Wednesday 7:30 Challenger Job Cuts, 8:15 ADP Non Farm Employment Change, 10:00 ISM Non Manufacturing PMI, 10:30 Crude Oil Inventories, 2:00 FOMC Meeting Minutes. Thursday 8:30 Unemployment Claims. Friday 8:30 Non Farm Employment Change, 8:30 Unemployment Rate, 8:30 Average Hourly Earnings, 10:00 Wholesale Inventories, 3:00 Consumer Credit.
Some earnings for the week (keep in mind companies can change last minute: Tuesday nothing pre market and after the bell MOS, SONC. Wednesday pre market FDO, MON, and after the bell BBBY, RT, SMSC. Thursday pre market STZ, LEN, SCHN, TXI and after the bell APOL, LWSN. Friday pre market PSMT and nothing after the bell.
NQ (Nas 100 e-mini) Tuesday’s pivot 1885.50, weekly pivot 1869.25. Support: 1876.25, 1873.25, 1870, 1867 fills gap, 1858.75,1852.25 fills gap. Resistance: 1887.75, 1895.50, 1901.50, 1906.50, 1912.75, 1918.25-1920.50