Tuesday brought a little more participation in the market on the NYSE, Nasdaq and futures for a nice accumulation day. The 12:30 reversal let the market close in the green and on the highs of the day. The VIX closed at a new low on the year at 23.87 and the TRIN high again at 1.49 still bearish. Gold closed the day down $1.80 at $947 and oil up 83 cents at 64.81 on the August contract which expired today and up 28 cents on the September contract to close at 65.57.
Early weakness let the market drift off the highs while Chairman Bernanke spoke and a much needed retracement set in. The SPX closed just a few points off the 956.23 highs. The Dow did clear the 8877.93 6/11 swing high. The NDX, Composite and SPX all closed the day with hanging man candle on the highs, the Dow more closed with a different look more of a spinning top. Financials finished the day red and has the BKX rejecting the 200dma and 50dma. All the indexes are into the upper Bollinger, Stochastics at 98+, RSI 68’s, CCI over 100 line. All still showing signs of overbought conditions on the daily. Intraday the drop we had all morning managed to clear up some divergence and overbought conditions.
After the bell AMD , YHOO, and QLGC all traded down off earnings news. The star of the show is Apple (AAPL) up 4.6% off earnings after the bell. Leaving the market with more good news out of tech if we ignore AMD. I’ll look for AAPL to give up some of these gains early tomorrow and pull in. Don’t get in a hurry jump in until a reversal shows us an entry. A down day would confirm the hanging man daily candle for a deeper downside move. Retracement is still on our watch because of the Stochastics up at 98-99, it can’t go over 100 so we will either see a VERY tight narrow range market to work this off or a pullback.
Economic data for the week (underlined means more likely to be a mkt mover): Wednesday 10:00 HPI, 10:30 Crude Oil Inventories, Thursday 8:30 Unemployment Claims, 10:00 Existing Homes, 10:30 Natural Gas Storage, Friday 9:55 Univ Of Michigan Consumer Sentiment, 9:55 Univ Of Michigan Inflation Expectations.
Some earnings for the week (keep in mind companies can change last minute: Wednesday pre market MO, BK, BA, LLY, GENZ, KEY, MS, PEP, PFE, USB, WFC, and after the bell AFFX, ADS, BIDU, CMG, CRUS, ETFC, EBAY, FFIV, ISIL, ISRG, MLNX, MOS, NVEC, QCOM, SNDK, VMW. Thursday pre market MMM, T, BG, CELG, CIT, CME, FITB, F, JBLU, LLL, MCD, NEM, NUE, OXY, PENN, PFCB, POT, RS, R, TRA, UPS, WYE, XRX, ZMH and after the bell AMZN, AXP, BRCM, BNI, CA, COF, CAKE, JNPR, KLAC, LSCC, MCHP, MSFT, NFLX, PMCS, RMBS, RFMD. Friday pre market BDK, IR, SLB, and nothing after the bell.
ES (S&P 500 e-mini) Wednesday’s pivot 949.25, weekly pivot 914.50, monthly pivot 918. Intraday support: 948.50, 945, 942.50, 939, 936.25, 933.25-932.75, 925.75, 920.50 38.2%. Resistance: 953 6/5 highs, 956.50, 959.25, 961.25, 976.50.
