Wednesday closed the day red across the broader markets on light volume. Volume backed off that huge volume the market had on Tuesday, but it was still higher than we’ve seen for the past 3 weeks. The TRIN closed at 1.56 bearish and the VIX at 34.54, still 21.5% off the 10dma. Gold closed up $1.10 to $1243.50 an ounce and oil closed down 31 cents to $75.63 a barrel.
Another late day acceleration took the market out of Tuesday’s range and closed on the lows. The market still sets over the levels I posted last night as key support just below us. So keep those handy for Thursday. On the weekly charts 38.2% support is nearing: the Nasdaq Composite 2050.23, Nas 100 1667.82, S&P 500 1006.99 and the Dow 9396.61 fib support is the big area below us. February lows are just over those levels to be watched: COMPX 2100.17, NDX 1712.89, and the Dow 9757.55 years low are under us. The SPX fell through the 1040.78 prior years lows, leaving it as the only index to retrace all the years gains.
Futures played around the pivots for most of the day until they fell under Tuesday’s lows. Then we never turned back for another look. That still leaves the weekly pivots overhead and untested as we go into the second half of the week. The weak close leaves us once again looking for an early bounce off an exhaustive gap. If the market gaps down look for some buying to step in for an early bounce. If the markets opens higher I don’t expect that to be long lived and for selling to pull us back in.
Economic data for the week (underlined means more likely to be a mkt mover): Thursday 7:30 Challenger Job Cuts, 8:30 Unemployment Claims, 10:00 ISM Manufacturing PMI, 10:00 Pending Home Sales, 10:00 Construction Spending, 10:00 ISM Manufacturing Prices, 10:30 Natural Gas Storage, All Day Total Vehicle Sales. Friday 8:30 Non Farm Employment Change, 8:30 Unemployment Rate, 8:30 Average Hourly Earnings, 10:00 Factory Orders.
Some earnings for the week (keep in mind companies can change last minute: Thursday pre market STZ and FLOW. Friday nothing due out.
ES (S&P 500 e-mini) Thursday’s pivot 1030.50, weekly pivot 1089. Intraday support: 1024.50, 1021.25, 1014.75, 1012.25, 1005.25. Resistance: 1031, 1035.50, 1039.50, 1043.25-1044.50, 1048.75, 1055.75, 1058, 1067.50, 1071.
