Monday started the week with a modest win on the NDX, SPX and Dow, leaving the Nas Composite slightly red.  The market reversed off the lows after three hours of selling to then close on the highs.  Very nice turn, but with lighter participation than we saw on Friday.  Friday was extremely heavy today was not bad, but lighter than Friday.  The VIX closed at 17.34 and the TRIN at .59 very bullish on the day.  The TRIN’s flat reading throughout the day did show that a lot of shares were moving up on heavy volume while the down was on lighter to keep that TRIN on lighter volume.  Also lack of selling and possibly some dip buying on some sector rotation.  Gold closed the day down 90 cents to $1136 and oil down $1.79 to $81.45 a barrel. 

IBM reported after the bell, the stock closed at $132.23 and traded down to $129.45 in the after- hours session.  Tuesday morning is likely to focus on the Goldman Sachs (GS) report and the conference call which is likely to focus on the SEC charges.  Monday afternoon we heard that the SEC has a split vote within their own agency on bringing charges against GS with a 4-3 vote.  If they don’t have a stronger consensus than that, there maybe little for GS to worry about putting his to rest quickly.  Convincing experts shouldn’t be that difficult within your own house if the evidence is that strong is my view of this.  I’m not saying GS did nothing, but it sure is on thin ice for now with me.  Which is also why the stock rebounded $8.00 off the day’s lows.  Not bad for a days rise, but still has losses off Fridays hit. With GS on Tuesday morning will be KO and JNJ both Dow components reporting.

The early fall on the market continued the weak move from Friday.  However, the turn once the gap filled from the 13th and the GS news started to take hold.  The weakness in tech outweighed the financial weakness, but both key sectors found support and turned up.  Now the support the market came off has to hold or the bears get to see this move off the highs completed.  We’ve seen a very resilient market and a market that only wants to move one direction.  Last week started wiggling some both ways and now two days of movement.  We won’t send for the party hats yet, but maybe we get to see nice ranges and movement throughout this week.  Tuesday I think we get some retracement on that late day lift and then the bulls have to come in or we’ll see the lower levels. 

The NQ, ES and TF opened weak and by days end traded into the green, even getting to the weekly pivots just before the close.  With that checked off the list for the week we now have plenty to look forward too.  The level I outlined last night for the ES at 1179.50 will still be the key level.  We stayed just one tick off the support, a break there would let the ES trade down to 1171.  The NQ dropped 1995.75 and onto 1985.75, now we have 1989.25 as the level to hold or we see 1973 and onto 1959.25.  The TF 699.7 and onto 697.60 support should be watched.  Now with the late day strong move back up the resistance overhead to watch will be 714.80 and onto 718.90 over that the bulls get to lift off.  The ES 1204 and onto 1210.50 are the key levels.  The NQ 2026.50 will be the line in the sand and onto 2037.75 resistance should be watched for. 

Economic data for the week (underlined means more likely to be a mkt mover)  Tuesday nothing due out.  Wednesday 10:30 Crude Oil Inventories.  Thursday 8:30 PPI, 8:30 Unemployment Claims, 8:30 Core PPI, 10:00 Existing Home Sales, 10:00 HPI, 10:30 Natural Gas.  Friday 8:30 Core Durable Goods Orders, 8:30 Durable Goods Orders, 10:00 New Home SalesSaturday IMF meetings (Greece concerns likely to be a focus).

Some earnings for the week (keep in mind companies can change last minute:  Tuesday pre market AKS, BK, BIIB, BJS, COH, KO, GS, HOG, JNJ, PCAR, STT, AMTD, UNH, USB, and after the bell AAPL, GILD, SYK, VMW, YHOO.  Wednesday pre market MO, T, ATMI, BA, GENZ, KEY, MCD, MS, STJ, TIN, UTX, WFC and after the bell AFFX, AMGN, CMG, EBAY, FNF, ISIL, MEE, NFLX, NTGR, NE, NVLS, PLCM, QCOM, SNDK, SBUX, TER.  Thursday pre market ALK, ABC, BG, CAL, CY, FITB, F,   ESI, LLL, MAR, NOK, NUE, BTU, PENN, PEP, PNC, PFS, RS, LUV, SU, TASR, TRA, UNP, VZ, WSO, ZMH and after the bell AMZN, AXP, COF, CAKE, DECK, IGT, LSCC, MSCC, OSIP, PMCS, RMBS, STMP, STM.  Friday pre market CMS, HON, IR, SLB, TRV, XRX and nothing after the bell.

ES (S&P 500 e-mini) Tuesday’s pivot 1190.75, weekly pivot 1194.50.  Intraday support: 1190, 1186-1185 swing low, 1183.25, 1179.50, 1175, 1171.  Resistance: 1198.75, 1201.50, 1204, 1210.50, 1218.75