Wednesday another day of gains for the broader markets and on mixed volume.  The NYSE was lighter volume, Nasdaq heavier volume and all futures were heavier volume.  The TRIN closed at 1.27, still too high for this bullish price action.  The VIX closed at 24.32, still off the years lows at 23.00 but it is the lowest close since August 14th.  Gold pulled off its rally to close at $997.30 down $2.50 and oil up 39 cents to close at $71.49 a barrel.

The Nas Composite closed into the upper Bollinger on the daily chart and also closed just over the prior 2059.48 highs on August 28th for new highs on the year.  The Nasdaq 100 also put in new highs on the year over the prior 1668.01 and into the upper Bollinger.  Coming into Wednesday we were looking for the hanging men candles on the Nasdaq to pull us in, that didn’t happen so another up day came instead to void those candles.  The S&P 500 sits just under the 1039.47 8/28 highs by 6 points.  The Dow is sitting just shy of the 9630.20 highs from August 28th and will need the help of a few laggards to get there early tomorrow for 83 points. 

Although the Nasdaq and the SOX are into the upper Bollinger, they aren’t overbought on any other indicator on the daily or intraday charts.  The Sox did close with divergence and hardware the other sector of strength behind the Nasdaq’s advance will be watched into Thursday.  HWI (hardware) closed the day slightly red, it was a sell the news off the Apple conference.  Internets and Telecom are also showing signs of weakness, leaving the SOX as the strong leader and into resistance after a lofty lift over the past four sessions.  On the financial side of the market we have brokers into the 2009 highs and banks lagging back off the 48.16 8/24 2009 highs after closing at 45.71. 

Thursday will start with early data, the biggest release of the week so far.  Thursday will also bring us rollover on futures.  Futures will rollover to December (Z), which splits the volume and leaves us with a slow opening usually.  Be sure you have changed your charts and trading platform to reflect the December contract.  The current September (U) will expire on Friday the 18th, but we’ll start trading December upon Thursdays opening. 

We’ll look for any weakness for a pullback, the bulls are once again not pulling back and holding the market hostage in a mid day channel before it advances late day.  I will watch the Nasdaq for guiding the rest of the market, hitting those new highs for the year today will need to see continuation or we’ll tumble quickly.  The last new high on the 28th did sell off for several days and the prior years high was on 4th also sold off the following day.  That doesn’t mean history will repeat itself, but look for a refueling pullback with the sign of any weakness.

Economic data for the week (underlined means more likely to be a mkt mover):  Thursday 8:30 Trade Balance, 8:30 Unemployment Claims, 10:30 Nat Gas Storage, 11:00 Crude Oil Inventories, 12:30 FOMC Member Lockhart Speaks, Friday 8:30 Import Prices, 9:55 Prelim UoM Consumer Sentiment, 9:55 Prelim UoM Inflation Expectations, 10:00 Wholesale Inventories, 2:00 Federal Budget Balance.

Some earnings for the week (keep in mind companies can change last minute:   Thursday pre market CIEN, MOV and after the bell COO, SNDA, ULTA.  Friday pre market HRB and nothing after the bell.   

COMPX (Nasdaq Composite) closed +22.62 at 2060.39.  Support: 2025.20, 1999.78, 1981.69, 1936.73 38.2%.   Resistance: 2063.52 50% weekly, 2102.83-2107.96, 2156.43