Monday closed with a narrow range leaving a modest loss on the broader markets.  Volume fell off on the NYSE and Nasdaq, tight ranges always come with no volume, that is a digestive day.  The day was exactly as expected following last weeks move and options expiration.  The TRIN closed at 1.01 and the VIX at 19.94.  It was a very quiet day for market breadth, no conviction for either side to play tug of war in range.  Gold closed down $8.60 at $1113.50 and oil up 21 cents to $80.27 a barrel.

When the market winds up this tight it is to let the market rest and get ready for a move.  Coming into the end of the month I expect this market to expand and provide us with some volatility.  Economic data picks for the rest of the week and will also provide some movement, we will also hear from the Fed Chairman later in the week.  The Nasdaq 100 was noticeably weaker throughout the day dragging the market along.  Big cap tech was not a happy camper today, financials in particular banks stepped up for a strong day keeping the SPX and ES holding over Friday’s low nicely. 

Into Tuesday look for an early move, bracket Monday’s range and look for a break outside of it.  We can even dial down to the first half hour and look for a break of that range and find some continuation out of it.  Futures just missed testing the weekly pivots today staying just 2 points off on the NQ, ES 5.5 off and TF 4.80 off, leaving us still with a need at looking lower.  A break of Monday’s low should get those tested quickly and provide a rotational zone to move around.  With the market still sitting into 61.8% resistance, the digestive day helps to let that rest and still sit overhead.  Pulling off and finding volume to break that is still on the table, but the longer we sit here the move likely we are to find some weight to pull us in.

Economic data for the week (underlined means more likely to be a mkt mover):  Tuesday 9:00 S&P Composite 20 HPI, 10:00 Consumer Confidence, 10:00 Richmond Manufacturing Index, 5:00 FOMC Member Bullard Speaks.  Wednesday tentative 10:00 Fed Chairman Bernanke testifies, 10:00 New Home Sales, 10:00 Treasury Sec Geithner Speaks, 10:30 Crude Oil Inventories.  Thursday 8:30 Core Durable Goods Orders, 8:30 Unemployment Claims, 8:30 Durable Goods Orders, 10:00 HPI m/m, 10:30 Natural Gas Storage.  Friday 8:30 Prelim GDP, 8:30 Prelim GDP Price Index, 9:45 Chicago PMI, 9:55 Revised UoM Consumer Sentiment, 9:55 Revised UoM Inflation Expectations, 10:00 Existing Home Sales.

Some earnings for the week (keep in mind companies can change last minute:    Tuesday pre market BKS, HD, HURN, IDA, ISLE, LIZ, M, MDT, SHLD, TGT, and after the bell ADSK, DWA, ONXX, OSIP, WYNN.  Wednesday pre market DLTR, FSRV, GRMN, SKS, TJX, TOL, UNFI and after the bell ESRX, GDP, NTES, CRM, SMSI, JAVA  Thursday pre market ABK, CSE, FTO, ITWO, MYL, NEM, ZEUS, OMG, ZLC and after the bell DECK, DRYS, ERES, GPS, TIE.  Friday pre market BIOS, FRO, GAS, TTI and after the bell AES.