Wednesday left the day in the red on the lows after spending most the day near the highs. Volume came in mixed with the NYSE down and the Nasdaq higher and futures were lower. The TRIN closed on the days high at 1.31 bearish and the VIX at 35.02. Gold closed the day up $12.60 to $1210.60 an ounce and oil up $2.76 to $71.51 a barrel.
Tuesday left possible reversal candles and support candles that we were watching for continuation off. That did not come to the markets today, with the lower close the candles are still support, but not reversal material for us. The continuation is not out of the pattern totally but today’s weak close is not a bullish sign. The Nas Composite and Nas 100 continue to straddle the 200dma’s support.
The late day fall let futures test the daily pivots. The ES had key support at 1049.50 and resistance at 1078.50. NQ resistance at 1826.5 and support 1774.50. A break of either support or resistance is where we look for continuation in that direction. The fall in the last two hours left the day with divergence on the 13 minute and 5 minute charts and oversold. 60 minute didn’t have any of that and still has room for downside movement. Retracement into the resistance above should be watched for to work off some of the fall. With early data the market is likely to gap again with a bigger gap and let us see if buyers come in.
Economic data for the week (underlined means more likely to be a mkt mover): Thursday 8:30 Prelim GDP, 8:30 Unemployment Claims, 8:30 Prelim GDP Price Index, 10:30 Natural Gas Storage. Friday 8:30 Core PCE Price Index, 8:30 Personal Income, 8:30 Personal Spending, 9:45 Chicago PMI, 9:55 Revised Consumer Sentiment, 9:55 UofM Inflation Expectations.
Some earnings for the week (keep in mind companies can change last minute: Thursday pre market BIG, COST, HNZ, SNSS, TIF and after the bell ESL, JCG, OVTI, SEAC. Friday pre market FRO and after the bell NCTY.
NQ (Nas 100 e-mini) Thursday’s pivot 1809.50, weekly pivot 1838.50. Support: 1782, 1774.50, 1769.25, 1764.50. Resistance: 1812, 1819.25, 1826.50, 1831.75, 1836.75, 1840, 1849.50, 1858.25, 1868.25 fills gap, 1873.75
