Wednesday erased Tuesday’s losses and closed the day near the highs with the Dow +1.17%, RUT+1.14, SPX +1.05%, and the COMPX +.83%. Volume fell off significantly today, following a sell off on heavy volume and now lifting on light volume. The TRIN closed at 1.05 a little high for the price action we had today and the VIX closed near the lows on the day at 19.79. Gold closed up $9.00 to $1345.00 and oil moved higher to close at $82.52 +2.36 a barrel.
The market is poised just under last weeks highs and that leaves us in range still. The market is just not finding its way out of range. Earnings are swinging us around, but not out of range. The unknown is still looming over the market with the mortgage mess and on the other side we had the Fed out last week telling us they aren’t out of arsenal and everything will be alright. It is like a terrible tug of war, but it will end and the market will move. The bulls have been very resilient with any bad news. Even Apple’s sell off didn’t pull the market into the abyss. Apple is still lower than it was pre earnings and unless it rolls under 300 the Nasdaq doesn’t have a lot to worry about. So we’ll keep one eye on Apple (AAPL).
Futures filled the gaps that were left open after Tuesday’s huge gap down. However, when those levels traded selling did step in and pull the market off the ledge pretty quickly. With the light volume nothing happened very quickly, it was our digestive lift and chop. I expect Thursday to bring in heavier volume and for the morning to bring us movement. TF has 692.60, ES 1161 and NQ 2049.75 supports as key levels to watch. The ES and TF have skated under and then back over those levels. Which leaves me to be suspect of those key levels on the ES and TF unless the NQ breaks 2049.75, every index has to find the same page for a breakdown. . Back through the weeks highs is likely to open the door much wider for the bulls.
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 Storage, 2:00 FOMC Member Bullard Speaks. Friday G20 meeting starts. Saturday G20 Meetings Day 2
Some earnings for the week (keep in mind companies can change last minute: Thursday pre market FLWS, ALK, T, BG, CAT, CRUS, CAL, CY, LLY, FITB, FCX, JBLU, MCD, MNRO, NUE, PENN, POOL, RS, R, LUV, TRV, UNP, UAL, UPS, XRX and after the bell AMZN, AXP, AMGN, BIDU, CA, COF, CAKE, CMG, LSCC, NCR, PMCS, QLGC, RMBS, SNDK, SYNA. Friday pre market HON, IR, KEY, ERIC, SLB, VZ and nothing after the bell.
ES (S&P 500 e-mini) Thursday’s pivot 1173, weekly pivot 1169.25. Intraday support: 1170.50, 1167.75, 1164.75, 1161 38.2%-1160.75, 1154.50, 1148.25, 1143, 1138.75, 1134.75 fills gap. Resistance: 1178.50, 1182.25, 1184.75, 1189.50, 1196.50, 1201.75, 1203.25, 1211
