Tuesday closed the day green for the S&P 500 and Nasdaq on heavier volume for an accumulation day. The Dow and Russell 2000 closed the day slightly red and on heavier volume for a distribution day. Little split in the days outcome, but it was a very narrow range day with little to do on either side of the fence. The TRIN closed at .65 bullish on the day and the VIX at 19.35, which is the low from 2009. Gold closed up 20 cents to $1118.50 and oil up 21 cents to $81.72 a barrel.
Into Wednesday the market is still wound tightly even with hitting new intraday 52 week highs the market is unable to just run. Breaking out and finding momentum is what the market needs to see in order to move us out of range. But it isn’t coming anytime soon from the looks of the last two days. I do believe we are building steam while sitting here and we will move on by weeks end. The markets volume did increase today, but is still lighter than normal.
Wednesday we can bracket the last two days range and look for a break of either side for direction. I don’t think we will sit in range Wednesday and the easiest way to find direction will be to see the market move out of the two day range. Futures have not tested weekly pivots, which are still under us and that would also clear up Monday’s open gap too.
Economic data for the week (underlined means more likely to be a mkt mover): Wednesday 7:30 Challenger Job Cuts, 8:15 ADP Non Farm Employment Change, 10:00 ISM Non Manufacturing PMI, 10:30 Crude Oil Inventories, 2:00 FOMC Meeting Minutes. Thursday 8:30 Unemployment Claims. Friday 8:30 Non Farm Employment Change, 8:30 Unemployment Rate, 8:30 Average Hourly Earnings, 10:00 Wholesale Inventories, 3:00 Consumer Credit.
Some earnings for the week (keep in mind companies can change last minute: Wednesday pre market FDO, MON, and after the bell BBBY, RT, SMSC. Thursday pre market STZ, LEN, SCHN, TXI and after the bell APOL, LWSN. Friday pre market PSMT and nothing after the bell.
ES (S&P 500 e-mini) Wednesday’s pivot 1130, weekly pivot 1117.25. Intraday support: 1130.25, 1128.50, 1124 38.2%, 1121.25, 1118.50, 1114.75-1113.50 fills gap. Resistance: 1134.25-1134.75-1135.50, 1138.25, 1143, 1147.50, 1153.50.
