Wednesday closed the market with a split day, marginal on both sides. The Nasdaq closed green on heavier volume for an accumulation day and the S&P 500 along with the Dow were slightly red on heavier volume for a distribution day. The A/D and U/D lines finished negative, but also with a neutral tone. The TRIN remained fairly flat in the bears territory throughout the day at 1.56. Gold closed up $3.80 at $936 and oil up 59 cents at $71.06 a barrel.
Narrow digestive range on the day left the market digesting the prior two down days. It was pretty much what we expected to see today and was a little lackluster for movement, particularly in the final hour. The Es and ER completed ABC patterns today for the nice reversal the market brought in. It was really about all we could ask for today after two down days. Volume was a sign of nice participation despite the narrow range, that is due in part to expiration week.
Into Thursday the market has more economic data in the pre market and into 10:00 which winds down the data for the week. I don’t have a lot of bias into Thursday. The ABC gives me a little outlook to retest or see higher low off the Wednesday low and move higher for an outlook. But this narrow range leaves me a little more neutral than bullish. Bracket the Wednesday range and look for a break of it to set the days tone is the way to find the days tone. Volume should again be higher and continue to build into Friday, which gives us plenty to look for.
Economic data for the week (underlined means more likely to be a mkt mover): Thursday 8:30 Unemployment Claims, 10:00 Philly Fed Manufacturing Index, 10:00 CB Leading Index, 10:30 Natural Gas, Friday nothing due out but its Quadruple witching expiration day
Some earnings for the week (keep in mind companies can change last minute: Thursday pre market CCL, SJM, PRGS, WGO, and after the bell RIMM, SGK, SWHC. Friday pre market KMX and after the bell nothing do out.
NQ (Nas 100 e-mini) Thursday’s pivot 1453.25, weekly pivot 1489, monthly 1405.50. Support: 1444.50, 1441.50, 1437.75-1436.75, 1431.50, 1428.25-1426.25, 1415. Resistance: 1458.75, 1463, 1465.75, 1469.50, 1474.5, 1483.25-1485 fills gap, 1489.75
