Tuesday ended up being an narrow range zigzag day on the broader markets. The Nasdaq 100 and Composite closed with inside green days, SPX an outside day and green, Dow an outside day and modestly red. Volume was better than the prior two days on the NYSE and Nasdaq by a significant margin. The VIX closed at 22.99 and the TRIN at .99 neutral on the day. Gold closed up $7.10 at $1064.60 and oil up 88 cents to $74.15 a barrel.
After the bell the market found Intel to be good news and guidance was very positive for the company. The bulls are happy for now with INTC, and took AMD, NVDA, MU etc.. all trading up on the news. Before the bell the market has JPM, if that is good news I would expect these gains to hold for a big gap up in the morning. The market may hesitate to come off, but it should be an extreme gap if JPM helps the market hold these gains. That will leave us looking for a move off the highs early on. The daily charts we are not far from the upper Bollinger and the 2009 highs for resistance, watch those levels (The Dow 9931.82 the 2009 high, the SPX 1079.46, the Nasdaq at 1754.54 and the Nas Composite 2167.70). One way to clear big resistance like the 2009 highs is to gap over that level. Coming back to retest for support will be watched if we get that gap over. Also watch for analyst comments on INTC and the sector to have any impact in the morning. Tech rotation is good for the market and the fuel we would need to see this market continue, but we aren’t finished with big earnings this week. So don’t count on anything until we see some financials. Tech is one shoe in the right direction for IT spending, but we’ll need JPM, C, BAC and others this week on the financials side to support the tech. Also some other big caps GOOG and IBM can turn anything around this week.
Economic data for the week (underlined means more likely to be a mkt mover): Wednesday 8:30 Core Retail Sales, 8:30 Retail Sales, 8:30 Import Prices, 10:00 Business Inventories, 2:00 FOMC Meeting Minutes. Thursday 8:30 Core CPI, 8:30 Unemployment Claims, 8:30 CPI, 8:30 Empire State Manufacturing Index, 10:00 Philly Fed Manufacturing Index, 10:30 Natural Gas Storage, 11:00 Crude Oil Inventories. Friday 9:00 TIC Long Term Purchases, 9:15 Capacity Utilization Rate, 9:15 Industrial Production, 9:55 Prelim UoM Consumer Sentiment, 9:55 Prelim UoM Inflation Expectations.
Some earnings for the week (keep in mind companies can change last minute: Wednesday pre market JPM, and after the bell STLD, XLNX. Thursday pre market BIIB, SCHW, CIT, C, CY, GS, NOK, LUV, WGO and after the bell AMD, GOOG, IBM, NVLS, PMCS. Friday pre market BAC, GE, HAL, MAT and nothing after the bell.
NQ (Nas 100 e-mini) Wednesday’s pivot 1726.75, weekly pivot 1705. Support: 1720, 1715.25, 1712, 1708 fills gap, 1706.75 38.2%, 1696.50, 1686. Resistance: 1731.75, 1737.25, 1744.50, 1748.50, 1752.50-1753.25 9/23 swing high.