Wednesday brought another lift to the broader markets for a nice rally day. The bulls came out and stayed around to not give up ground today. The volume left another accumulation day on the NYSE and Nasdaq, futures the ES came in higher than Tuesday but the NQ and TF were slightly lighter. The TRIN closed very bullish at .34 and the VIX fell to 26.84. Gold lifted $2.90 to $1198 and oil was also up $2.09 to $74.07 a barrel.
The continuation of Tuesday’s advance showed the bulls can come out and play. Wednesday was a much bigger day of participation and held the gains. Tuesday managed to eke out a gain but not as strong, seeing volume increase is also a sign of buyers and some short covering. Banks led the key sectors with the SOX as a close second in the advance. Showing we had tech and financial support on the advance. Intraday the lift did leave the market overbought on a shorter time frame (60, 13 and 5 minute). The daily is still fine, but an early pullback is likely to happen to let the market catch its breath and digest Wednesday’s big move up.
Into Thursday the market will see economic data in the pre market. The week is light on data and a short one, so Thursday’s will be the highlight of the week in that department. The ES cleared 1052.5 38.2% fib resistance, the NQ is not over 1790, which is what we need to see now. It took the Nasdaq awhile to get in gear and clear Tuesday’s highs, but once it did we saw the Nasdaq pick up steam and increase the markets momentum. If the NQ gets over 1790 we look for 1818.50 and onto fill the gap at 1836 from 6/28. The ES stays over 1052.50 and onto 1066.75 and the gap at 1071. If the NQ cannot clear 1790 pulling back to 1754.5 and the ES to 1039.25.
Economic data for the week (underlined means more likely to be a mkt mover): Thursday 8:30 Unemployment Claims, 10:30 Natural Gas Storage, 11:00 Crude Oil Inventories, 3:00 Consumer Credit. Friday 10:00 Wholesale Inventories.
Some earnings for the week (keep in mind companies can change last minute: Thursday pre market COMS, HELE, ISCA and after the bell LWSN, NUHC. Friday pre market PSMT and nothing after the bell.
COMPX (Nasdaq Composite) closed +65.59 at 2159.47. Support: 2121.59, 2081.19, 2063.51-2061.14. Resistance: 2167.95, 2201.01, 2220.65 fills gap, 2234.07
