Wednesday brought a losing day to the broader markets. Fed Chairman Bernanke started the slide and it continued until the close. Volume increased on the NYSE, Nasdaq and futures for a distribution day. The VIX closed at 25.64 and the TRIN at 2.01 bearish on the day. Gold closed up 30 cents to $1192 and oil closed down $1.02 to $76.56 a barrel.
The day started narrow and expanded after the Chairman’s testimony started. However, the market did hold over Tuesday’s low still keeping the market in range. After the bell EBAY, QCOM and BIDU reported earnings all beating on EPS and revenue. All are trading higher in the afterhours, SBUX, NFLX and ISRG are all trading lower. Futures had a very modest to flat reaction on the earnings.
The day’s fall erased a lot of Tuesday’s gains. Looking at the daily charts you can see the market is still in the four day range and not getting anywhere on the fast train. Tuesday’s action with the reversal left me shaking my head and Wednesday followed it with this drop, leaves me a little confused. Part of that is the range which is neutralizing all the indicators and intraday the moves come out of chop to not give good signals. This too shall pass! The market has to leave this four day range to show us the way now. My bias is a little negative, but it is really so neutral even having that much of a bias is dangerous. Which leaves us to once again bracket the days range and move from there.
Economic data for the week (underlined means more likely to be a mkt mover): Thursday 8:30 Unemployment Claims, 9:30 Fed Chairman Bernanke Testifies, 10:00 Existing Home Sales, , 10:00 CB Leading Index, 10:00 HPI m/m, 10:30 Natural Gas Storage. Friday nothing due out.
Some earnings for the week (keep in mind companies can change last minute: Thursday pre market MMM, ALK, T, CAT, CAL, CY, LLY, FITB, JBLU, KEY, NOK, NUE, OXPS, PENN, STJ, HOT, STI, TRAD, TRV, UNP, UPS, WSO, XRX, ZMH and after the bell AMZN, AXP, COF, CAKE, CMG, CYMI, DECK, ETFC, FLEX, HGSI, KLAC, LSCC, MSCC, MSFT, MOS, NCR, OSIP, PMCS, QLGC, RMBS, SNDK, STM, VASC. Friday pre market F, GAP, HON, MCD, R, SLB, TROW, TASR, VZ, and after the bell nothing due out.
NQ (Nas 100 e-mini) Thursday’s pivot 1829, weekly pivot 1822.75. Support: 1811.75, 1805.25, 1799, 1795, 1792.50, 1782.50, 1780. Resistance: 1829.75, 1835.50, 1841.25, 1845.75, 1849.50, 1852.25, 1860
