Wednesday closed the day green across the broader markets with light volume. Today’s volume fell under the volume we had prior to the big fall on Thursday. Which left us very light for the day. The TRIN closed at .72 bullish on the day and the VIX continued to fall off for a close at 25.52 off -2.80 on the day. Gold closed the day up $23.20 to $1243.50 an ounce and oil closed down 72 cents to $75.65 a barrel.
All week we’ve kept the 50dma’s in mind on any lift and today the COMPX closed over by 8 points, NDX over by 10 points, SPX under by 2 points, and the Dow over by 34 points. Now the indexes ( SPX is in the same territory and needs to get over) need to stay over that key moving average. The market has recovered all the losses from last Thursday and still sits below last weeks high. Another day closing over the 50dma would likely erase the rest of last weeks losses. The Dow has 10960.9, COMPX 2460.48, NDX 1993.70 and SPX 1186.84 78.6% resistance in the way of the years highs. Rejection at the 50dma, would be a sign of weakness and likely to accelerate the downside move.
After the bell Cisco (CSCO) reported earnings they beat by 3 cents on EPS, and in-line gross margins and beat on revs. CEO Chambers was very upbeat on the conference call and said Q3 was the best in the companies history and they are firing on all cylinders across all segments. However, despite the good report the stock fell 2.4% taking futures off slightly. This could be a sell the news event or the fuel to keep the markets over the 50dma. The indexes sit at a very pivotal point and with widely held CSCO there will be a lot of sympathy trades.
Futures left a gap open with the gap and go action Wednesday. Futures did trade the pivots throughout the day, but still no test of the weekly pivot under us. Early data on Thursday along with the CSCO news could make for a busy morning. Watch the tech sectors..SOX and HWI for guidance and impact to the NQ. 1987.25 is key NQ resistance over us, ES has 1182. and the TF has 720.10 on any strength those levels should be watched. A drop of 701.40 on TF, 1953.25 NQ and 1154 on the ES could leave the markets a little wary and pull the markets back.
SOX (semiconductor) closed +10.35 at 375.08. Support: 373.48, 372.84, 372.19, 371.27. Resistance: 375.62, 376.49, 377.11, 378.23, 381.86
