Wednesday closed the broader markets pretty much unchanged across the indexes. The Nas and the Dow slightly up, SPX slightly down but really pretty much no change on the day. The Volume equally lackluster on this digestive zigzag day. The NYSE came in equal to Tuesdays and the Nasdaq was modestly lighter. Futures were mixed with the ES and TF lighter volume and the Nasdaq a little heavier than Tuesday. I expected a digestive day and it is what the market god’s delivered. The TRIN closed at 1.14 and the VIX at 25.92 about 16% off the 10dma. Gold closed down $3.90 to $1230.50 and oil up 76 cents to $77.70 a barrel.
The week has been a little whippy but Monday was a reversal day, Tuesday a trend day and now Wednesday is our digestive zig zag day on the week. It is possible we see another reversal and even a trend day to come this week. Futures are still a little outside the normal, today only the ES tested the daily pivot in the late day fall. The NQ never reached the pivot below us and that still leaves the weekly pivots untested. Which I expected and talked about earlier in the week in comments.
Into Thursday out biggest day of economic data to start out the day early and then into the opening we’ll expect more at 10. The ES can move down to 1096 without causing a lot of pain to the bulls, any lower and we can expect a move onto 1085. A move through 1114.75 Wednesday’s high leaves the market looking for a move up to 1130 area. The NQ down to 1869.50 support and then onto 1857.5 should be watched for if that 1869.5 area breaks. The NQ over 1912.75 we can look for 1930. Keep an eye on oil stocks, they definitely caused some of the whip mid day off the BP news hitting all oil stocks and that could continue into Thursday. But I do think now that we have some resolution on the dividend and other stocks in the sector settling in we’ll see a lot of dissipate. Another point of interest for our focus into Thursday will be financials, banks cleared the 20dema and now have 50.92 38.2% resistance within striking distance. Brokers are a little further behind with 38.2% up at 110.47 still within striking distance on any given day for us. Financials will have to show up to see the SPX continue into Thursday.
Economic data for the week (underlined means more likely to be a mkt mover): Thursday 8:30 Core CPI, 8:30 Unemployment Claims, 8:30 CPI, 8:30 Current Account, 10:00 Philly Fed Manufacturing Index, 10:00 CB Leading Index, 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 ATU, DFS, KR, PIR, SFD, WGO and after the bell INXI, SMOD. Friday nothing due out.
BKX (Banks) closed +.01 at 49.88. Support: 49.17, 48.62, 47.64, 46.93. Resistance: 50.04, 50.93 38.2%, 52.43, 52.78 50dma.
