Tuesday closed the day with a narrow range edging out a small win for the bulls. Volume fell off a cliff and came in significantly lower than Monday’s in this digestive range. Nas Composite had the narrowest day since 10/15, Nas 100 since 11/10, SPX since 10/12, and 10/7 for the Dow. The Dow was the only index that traded through Monday’s highs, the other indexes stay inside Monday’s range. The VIX closed at 22.41 and the TRIN at .73 bullish on the day. Gold closed with no change at $1139.20 and oil up 20 cents to $79.10 a barrel.
Monday left the market with a trend day higher, Tuesday a narrow range digestive day and now Wednesday will be ready to move. Generally volume picks up through option expiration week and we’ll look for the increase along with a range break out of Tuesday’s narrow range. Wednesday will start the day with a lot of economic data and set the days tone. Our bias is very neutral and a zigzag day along with a reversal day is still likely to come our way this week.
Futures stuck around Monday’s close and the pivot throughout the day leaving us with a lot of rotation off those points. Wednesday that isn’t likely to be the theme and we are more likely to test the outer bounds of the range left from Monday. Keep these resistance levels handy on each index Nas Composite 2251.84, Nas 100 1887.98 (needs to say over 1781.28 to hold here), S&P 500 1121.44-1158.76, Dow 10495.20, and Russell 2000 625.31 and onto 660.38.
Economic data for the week (underlined means more likely to be a mkt mover): Wednesday 8:30 Building Permits, 8:30 Core CPI, 8:30 CPI, 8:30 Housing Starts, 10:30 Crude Oil Inventories. Thursday 8:30 Unemployment Claims, 10:00 Philly Fed Manufacturing Index, 10:30 Natural Gas Storage. Friday nothing due out.
Some earnings for the week (keep in mind companies can change last minute: Wednesday pre market BJ, SOLF and after the bell HOTT, NTAP, NTES, PETM. Thursday pre market PLCE, CIT, DKS, GME, ROST, SHLD, STP, and after the bell DELL, GPS, INTU, OHB, ZUMZ. Friday pre market ANN, DHI, SLM, KIRK and nothing after the bell.
ES (S&P 500 e-mini) Wednesday’s pivot 1105.5, weekly pivot 1086.50. Intraday support: 1102-1100.75, 1097.25, 1093.75, 1091.25 fills 11/13 gap, 1088.75. Resistance: 1109, 1111.75, 1116, 1118.25, 1124, 1129.50
