Monday closed the day green across the broader markets on light volume. Futures were also lighter and very digestive on the day. After hours IBM and TXN traded lower on earnings missing on revenue and initially futures dropped but they shrugged the weakness off and now sitting unchanged. It is likely we see a weak open after the European session gets underway. The TRIN closed at .92 neutral on the day and the VIX at 25.68. Gold closed down $6.20 to $1182 and oil up 53 cents to $76.54 a barrel.
With the digestive day the market will be ready for a move on Tuesday to expand the range. The ES has 1061.50, NQ 1799.25 38.2% fib supports, the TF came through that level and sits at 607.60 61.8% which is also a key level. TF back up to 617.60 and onto 621.30 would be a big bounce. The ES 1080.75, TF 617, and the NQ 1835.50 are key retracements to look for on Tuesday. With the neutral tone on the day and modestly green day the market could easily move either way, bracket the range and look for continuation is what we’ll do. The pre market earnings will set the day up for volatility and most the day will be filled with AAPL talk which comes after the bell Tuesday.
Economic data for the week (underlined means more likely to be a mkt mover): Tuesday 8:30 Building Permits, 8:30 Housing Starts, 10:00 FOMC Member Tarullo Speaks. Wednesday 10:00 Fed Chairman Bernanke Testifies, 10:30 Crude Oil Inventories. Thursday 8:30 Unemployment Claims, 10:00 Existing Home Sales, 10:00 Fed Chairman Bernanke Testifies, 10:00 CB Leading Index, 10:00 HPI m/m, 10:30 Natural Gas Storage. Friday nothing due out.
Some earnings for the week (keep in mind companies can change last minute: Tuesday pre market AOS, BIIB, CRUS, GS, JNJ, OMC, PEP, STT, AMTD, UNH, and after the bell AAPL, BSX, GILD, JNPR, LLTC, SYK, VMW, WCN, YHOO. Wednesday pre market MO, BLK, KO, ETN, EMC, GENZ, MS, OSTK, TXT, UTX, LCC, USB, WFC and after the bell ADS, AMLN, BIDU, CA, EBAY, FFIV, ISIL, ISRG, NFLX, NVEC, QCOM, SBUX, XLNX. Thursday pre market MMM, ALK, T, CAT, CAL, CY, LLY, FITB, JBLU, KEY, NOK, NUE, OXPS, PENN, STJ, HOT, STI, TRAD, TRV, UNP, UPS, WSO, XRX, ZMH and after the bell AMZN, AXP, COF, CAKE, CMG, CYMI, DECK, ETFC, FLEX, HGSI, KLAC, LSCC, MSCC, MSFT, MOS, NCR, OSIP, PMCS, QLGC, RMBS, SNDK, STM, VASC. Friday pre market F, GAP, HON, MCD, R, SLB, TROW, TASR, VZ, and after the bell nothing due out.
ES (S&P 500 e-mini) Tuesday’s pivot 1064, weekly pivot 1074. Intraday support: 1061.50, 1058.5, 1056.25, 1051, 1048.25, 1044.75, 1040.25. Resistance: 1071.75, 1076.25, 1080.75, 1084.25, 1087.25, 1095.50, 1101.50, 1108.25.
