Tuesday closed the day green across the broader markets with the RUT up +1.06%, SPX +.48%, Dow +.42%, COMPX+-.41%, and NDX +.07%. Volume came in higher on the NYSE and Nasdaq, nothing significant over Monday’s but modestly higher. Futures were almost double what traded on Monday, which is significant. The VIX closed at 22.60 after piercing the 200dma, we still closed under that level. The TRIN fell to close on the days low at .65 bullish tone. Gold moved higher to close at $10.00 to $1308.60 an ounce and oil up 34 cents to $76.18 a barrel.
The market closed very near the highs on the day and the high on the week. Leaving us with the need to break out and if we see a little window dressing into month end over the next two days the volume will be there and that could push us either way. Breaking into new highs would be likely to ignite the upside move and a break of Tuesdays low would also be cause for concern. The market is very fragile and no one wants to be caught short on a lift or left holding the bag on a drop.
Futures did test the weekly and daily pivots Tuesday, it was also a day where we broke the globex high and low. That is not something we see every day on the indexes. The ES has 1145.25 and onto 1151.25 overhead. The ES did trade to 1146 but quickly rejected and came back off, leaving that as a key area for us to clear and move on. The NQ traded to 2024.25 and came off, back through those highs we can look for 2033.50 to test.
Economic data for the week (underlined means more likely to be a mkt mover): Wednesday 10:30 Crude Oil Inventories, 1:15 FOMC Member Rosengren Speaks. Thursday 8:30 Unemployment Claims, 8:30 Final GDP, 8:30 Final GDP Price Index, 9:45 Chicago PMI, 10:00 Fed Chairman Bernanke Testifies, 10:30 Natural Gas Storage. Friday 8:30 Core PCE Price Index, 8:30 Personal Spending, 8:30 FOMC Member Dudley Speaks, 8:30 Personal Income, 9:55 Revised UoM Consumer Sentiment, 9:55 Revised UoM Inflation Expectations, 10:00 ISM Manufacturing PMI, 10:00 Construction Spending, 10:00 ISM Manufacturing Prices, Total Vehicle Sales All day.
Some earnings for the week (keep in mind companies can change last minute: Wednesday pre market GIS, JEF and after the bell BBBY, SCS. Thursday pre market RAD, SCHL, TXI and after the bell FINL, NKE, SABA, TIBX. Friday pre market KBH and nothing after the bell.
