Monday brought us a weak opening that was quickly pushed aside to see the market lift into positive territory and close near the highs. The markets volume was lighter on the NYSE and Nasdaq than Friday’s, but futures came in heavier. The VIX did not confirm Friday’s hammer by closing lower at 23.86. The TRIN kept neutral by closing at .92. Gold closed down $5.40 at $1001 an ounce and oil was down 40 cents to $68.85 a barrel.
The Nasdaq Composite, Nas 100 and S&P 500 closed at new highs for the year, the Dow is still just under the years highs. On the daily chart there is divergence on the daily CCI and RSI on each broader index, the stochastics is high 90’s on the COMPX, NDX and SPX, the Dow is still lower 90’s. The Nasdaq is into the upper Bollinger, the SPX and Dow sit just under, but it is still pointed up and open for a push. Brokers and hardware also closed at new highs on the year, banks, the SOX sits just off the highs for the year and banks are lagging back still.
Just when we are sure a weak opening will let the market rest, it finds the dip buyers and off to the races. Tuesday may lead to more of the same, it is the tone, shallow pullbacks and keep pushing higher. As I pointed out there is divergence on the daily charts, we can move in range to work that off, or see more of it. It does not mean we pullback, I would like to see that but there is no sign of that coming our way still. Which means we remain neutral and keep on our toes. The dollar did show some life as gold pulled off today, so we’ll keep watch for our UUP position to move. For futures the ES did test the weekly pivot off the opening, the NQ and TF did not. We’ll watch for the NQ to still test that weekly pivot, which would require a pullback.
Economic data for the week (underlined means more likely to be a mkt mover): Tuesday 8:30 Core Retail Sales, 8:30 PPI, 8:30 Retail Sales, 8:30 Core PPI, 8:30 Empire State Manufacturing Index, 10:00 Business Inventories, 10:00 IBD/TIPP Economic Optimism, Wednesday 8:30 Core CPI, 8:30 CPI, 8:30 Current Account, 9:00 TIC Long Term Purchases, 9:15 Capacity Utilization Rate, 9:15 Industrial Production, 10:30 Crude Oil Inventories, 1:00 NAHB Housing Market Index, Thursday 8:30 Building Permits, 8:30 Unemployment Claims, 8:30 Housing Starts, 10:00 Philly Fed Manufacturing Index, 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 BBY, GIGM, KR and after the bell ADBE. Wednesday pre market ZLC, and after the bell APOG, CKR, ORCL. Thursday pre market DFS, FDX, PIR, and after the bell PALM, TSCM. Friday nothing due.
ES (S&P 500 e-mini) Tuesday’s pivot 1039.50, weekly pivot 1029.75. Intraday support: 1039.25, 1035.50, 1032.75, 1029.50, 1023, 1016.25. Resistance: 1047, 1050-1051.50, 1057.50,1063.50
