Tuesday left the market to recover some of Monday’s losses and closed the day green across the broader markets. Volume left the building today and did not participate in the move. The A/D and U/D lines were very slow and steady throughout the day and ended with a nice day for the bulls. The TRIN extremely flat throughout the day to close bullish at .68 and the VIX closed at 26.18. Gold moved higher to $939.00 +3.20 an ounce and oil rallied $2.31 to close at $69.06 a barrel.
We started the week watching inverted head and shoulders on the 65 minute charts, those were negated by the weak open and drop of the head on Monday, now the market is grinding along. There are still gaps overhead, but Tuesday did make up some ground lost on Monday. The Dow along with the S&P 500 closed with inside bars and both recovered only half of the losses on Monday’s range. That doesn’t include the gap still overhead, which leaves plenty of room still to move. The Nasdaq Composite and Nas 100 traded just over Monday’s highs leaving only the gap overhead to fill in, which is resistance.
The market didn’t really run away today with the resistance sitting under key levels. The resistance to watch for is Nas 100 1590.25, S&P 500 993.60, and the Dow 9239.21, we clear those levels the market will see the bulls resume. Futures into 991 for the ES and 1589 on the NQ, also we have not seen the weekly pivots at 1002.50 on the ES and 1613.25 for the NQ. Watch for those levels if we clear 991 and 1589 to test on Wednesday. If we fail to take out the resistance levels, the week is likely to take a tone change. Retest Monday’s low and some is what I’d expect at this point.
Economic data for the week (underlined means more likely to be a mkt mover): Wednesday 10:30 Crude Oil Inventories, Thursday 8:30 Unemployment Claims, 10:00 Philly Fed Manufacturing Index, 10:00 CB Leading Index, 10:30 Natural Gas Inventory, Friday 10:00 Existing Home Sales, 10:00 Fed Chairman Bernanke Speaks.
Some earnings for the week (keep in mind companies can change last minute: Wednesday pre market BJ, DE, and after the bell CAI, HOTT, JDSU, NTAP, SINA, SNPS. Thursday pre market BKS, PLCE, DKS, GME, ROST, SHLD, STP, TTC and after the bell BRCD, GPS, INTU, SKIL. Friday pre market ANN, SJM.
NDX (Nasdaq 100) closed +21.61 at 1586.50. Support: 1552.66, 1542.13 38.2%, 1522.69 50dma. Resistance: 1590.25, 1607.01, 1639.82 50% on weekly, 1650.60, 1685.49
SPX (S&P 500) closed +9.94 at 989.67. Support: 979.13, 961.20 38.2%, 943.66. Resistance: 993.60, 1014.14 big 38.2% level, 1019.21, 1048.19, 1096.82, 1121.44.
