Wednesday closed the day green, erasing yesterday’s losses on mixed volume. The NYSE had slightly lower volume and the Nasdaq slightly outpaced Tuesday. The market faded the small gap, pausing over Tuesday’s lows and put in a big reversal for the remainder of the day. The TRIN closed at 1.06 on a late day rise, most of the day was down in the bulls territory at .75-.80. The VIX closed at 17.85 off .40 on the day. Gold closed the day up $7.60 to $1137 and oil down $1.14 to $79.65 a barrel.
The higher close kept the SPX and Dow from confirming the reversal candle put in on Tuesday. We were also watching the moving averages on the Nasdaq, but they remain in bullish order with today’s lift. The bulls still have hold of the market and a trend that isn’t changing directions easily. Plenty of data ahead of the market for the next two days as well as expiration on Friday. Earnings the market will key off after the bell Thursday for tech and pre market JP Morgan on Friday will also help to move the market.
The last two days the range expanded, but we are still sitting in the channel. This is still winding for a move outside of the range and until that comes we are just going to have to play the zone we sit in. Leadership from the Nasdaq will come from Intel so our wait isn’t likely to be long now. Futures played off the pivots and we can still look for the weeks high or low to break to extend the markets direction. Keep a neutral bias and for another day to gap, I would not look for the day to be a gap and go, so a fade with patience.
Economic data for the week (underlined means more likely to be a mkt mover): Thursday 8:30 Core Retail Sales, 8:30 Retail Sales, 8:30 Unemployment Claims, 8:30 Import Prices, 10:00 Business Inventories, 10:30 Natural Gas. Friday 8:30 Core CPI, 8:30 CPI, 8:30 Empire Manufacturing, 9:15 Capacity Utilization Rate, 9:15 Industrial Production, 9:55 Prelim UoM Consumer Sentiment, 9:55 Prelim UoM Inflation Expectations.
Some earnings for the week (keep in mind companies can change last minute: Thursday pre market SCHW and after the bell INTC. Friday pre market JPM and nothing after the bell.
COMPX (Nasdaq Composite) closed +25.59 at 2307.90. Support: 2298.17, 2288.98, 2213.18 fills gap, 2203.24 50dma. Resistance: 2341.83-2350.32, 2393.88 70.7%.
