Wednesday…any guesses? If you guessed a green close you are correct, making four consecutive wins on the broader markets. Volume once again is lighter and has continued to fall off with each passing day. The TRIN closed at 1.71, very bearish and the VIX at 19.71 about 6.5% off the 10dma. Keep an eye on the VIX if we get to 10% off that 10dma. Gold closed up $7.80 to $1044.50 and oil up $2.19 to $76.59 a barrel.
Thursday finishes the week out with early economic data and a partial day of trading. Which is really all the market has had all week, it just pretended to be open all day with no afternoon movement. These narrow ranges have been a killer all week and not likely to change into Thursday. The Nasdaq Composite, Nas 100 and S&P 500 all put in new intraday and closing highs on 2009, with the Dow still lagging back and off the 2009 highs by 50 points.
Into Thursday we will again look for the bulls to hold onto us and keep the range very narrow. The early data could give us a shaky opening for something to trade and then I would expect to see things die off quickly. Early closes are usually very quiet days for the market. Futures played off the pivots for the first time this week, still leaving the weekly untested. I don’t expect that kind of drop into Thursday unless something really BAD comes out of that data in the pre market and the lack of participation lets the pressure push us down. Brokers played in the advance today testing the 50dma, banks closed red and still under that key 50dma resistance. Semi’s which have been really strong closed well off the highs and with a possible reversal candle, watch that into Thursday for any weakness.
I hope everyone is enjoying the holiday season with friends and family. I wish everyone a healthy, happy and fun filled holiday!
Economic data for the week (underlined means more likely to be a mkt mover): Thursday 8:30 Core Durable Goods Orders, 8:30 Unemployment Claims, 8:30 Durable Goods Orders, 10:30 Natural Gas Storage, early close 1:15. Friday US markets closed. Monday nothing due. Tuesday 9:00 S&P/CS Composite 20 HPI, 10:00 Consumer Confidence. Wednesday 9:45 Chicago PMI, 10:30 Crude Oil Inventories. Thursday 8:30 Unemployment Claims, 10:30 Natural Gas Storage. Friday US Markets are closed
Some earnings for the week (keep in mind companies can change last minute: Wednesday pre market AM and nothing after the bell. Thursday nothing pre market and CRI after the bell. Friday US markets are closed.
SPX (S&P 500) closed +2.57 at 1120.59. Support: 1110.94, 1091.24 50dma-1085.55 38.2%, 1064.10, 1048.83 Resistance: 1121.44 50% on weekly, 1127.19-1131.86, 1158.76, 1228.74 61.8% on weekly.
