Tuesday brought another strong opening that faded off, it took all day to see a red market but we did close modestly red. The fall broke the six day winning streak to get our attention at the end of the day with the volume that came in. Futures volume outpaced Monday’s, but the NYSE and Nasdaq came in just shy of Monday’s. The TRIN closed bearish at 1.58 and the VIX at 20.01. Gold closed down $9.20 to $1098.70 and oil up 9 cents to $78.86 a barrel.
The Dow was the only index to touch new 52 week highs intraday, but closed back within range. The SPX, NDX and COMPX all left an inside day with a very narrow range for us. All closing at the low on the day and that leads us into Wednesday looking for follow through. The Dow left a doji on the day to possibly leave us with a reversal candle if confirmed with a lower close on Wednesday. The inside bar left by the other indexes we can look for a break of either side to continue the direction. The market left plenty of open gaps last week below us for targets to close up. Gaps are also support, so look for that to hold with each move on any downside.
Futures had a party at the pivots, but because our range didn’t expand our pivots into Wednesday are pretty much what we saw on Tuesday. That leaves us with a point to look to rotate off into Wednesday, which is like the narrow range bracketing. You just simply look to rotate off and expand the move for direction. The weekly’s are still below us and untested, we have two trading days left this week to get there. Unless the data is a great surprise to lift the market, I am looking for the bears to get another leg down to retrace this move into Wednesday.
Economic data for the week (underlined means more likely to be a mkt mover): Wednesday 9:45 Chicago PMI, 10:30 Crude Oil Inventories. Thursday 8:30 Unemployment Claims, 10:30 Natural Gas Storage. Friday US Markets are closed
Some earnings for the week (keep in mind companies can change last minute: Wednesday nothing pre market and after the bell OHB. Thursday pre market PNY and after the bell CRI. Friday nothing due out.
NQ (Nas 100 e-mini) Wednesday’s pivot 1873.50, weekly pivot 1847. Support: 1868.50, 1864.25, 1860.25, 1857.25, 1854.50, 1852.25 fills gap, 1847.25, 1842, 1837, 1830.50, 1825.25 fills gap. Resistance: 1878.50, 1881.50, 18885.50, 1890.50, 1894.25, 1901.50