Tuesday ended the day on mixed volume with a modest win across the indexes. The Nasdaq’s volume was slightly heavier than Monday and the NYSE was lighter. Futures, however came in not significantly heavier but enough to get my attention (about 12% higher), which really stayed steady all morning and didn’t drop off like we’ve seen in past choppy conditions. The TRIN moved up late day to 1.01 which is bearish and the VIX a new closing low for the year at 25.02. Crude closed down 32 cents to $59.37 and gold up 30 cents to $922.80 a barrel.
Very narrow range day and until days end it was the tightest range of the year, but that last pop expanded the range just enough to close on a new high. Nas Composite and Nas 100 are back over the 50dma. S&P 500 is putting some space over the head and shoulders neckline at 878 and is just 6 points under the 50dma. The Dow managed to just edge back over the 200dma and is about 110 points under the 50dma. Which puts the Dow back through the neckline of the head and shoulders after just peaking under it (8221 neckline). Putting back to back gains on the market has left the market looking for buyers. After the bell the market received another boost from Intel (INTC) earnings. Futures are still trading higher and INTC ended the day at 16.82 and traded up in the afterhours to 18.02. Nice lift which gave the market a sympathy lift into other semi’s and Nas stocks/futures.
Market is likely to gap up and look for 1475.76-1486.89 on the NDX and 918.40-923.03 on the SPX as resistance. We could gap very near those resistance points and watch the SOX into 278.39 for resistance. We are also likely to have an extreme opening, so be patient for a reversal bar to come off and setup for us. Tuesday did not test the daily pivot, so expect that to be on our radar into Wednesday on futures. Right now futures are up with the NQ up 24 and the ES up 8, that isn’t likely to be the case by the time we open Wednesday morning. But the Nq’s monthly pivot is 1468.75, which it traded through in globex, the ES is 918 and hasn’t traded in the globex. The monthly along with the daily pivots should be watched Wednesday.
Economic data for the week (underlined means more likely to be a mkt mover): Wednesday 8:30 Core CPI, 8:30 CPI, 8:30 Empire State Manufacturing Index, 9:15 Capacity Utilization Rate, 9:15 Industrial Production, 10:30 Crude Oil Inventories, 2:00 FOMC Meeting Minutes, Thursday 8:30 Unemployment Claims, 9:00 TIC Long Term Purchases, 10:00 Philly Fed Manufacturing Index, 10:30 Natural Gas, Friday 8:30 Building Permits, 8:30 Housing Starts, 1:00 NAHB Housing Market Index.
Some earnings for the week (keep in mind companies can change last minute: Wednesday pre market ABT, TXI, and after the bell JBHT, XLNX. Thursday pre market BIIB, CY, FCS, JPM, MBFI, NOK, PII and after the bell ESLR, GOOG, IBM, PMCS. Friday pre market BAC, C, GE, MAT, WBS and nothing after the bell.
NDX (Nasdaq 100) closed +5.14 at 1452.84. Support: 1435.61 50dma-1432.03, 1412.49, 1407.74, 1394.87. Resistance: 1458.52, 1475.76, 1490.88
