The market was knocked down by disappointing earning reports from DuPont, Texas Instruments, and U.S. Steel in the early trading, but later a better-than-expected rise of the consumer confidence index helped to hold the price up. At the end, ES closed at no change from its previous day.
So far the 9-day moving average line still holds the ES up. This 9-day ema line is very important the Fed and the Administration. Holding above the ema makes it appear there is still hope for economic recovery and perhaps a less-bad Election on Nov 2. It is all about the psychology, not the economy.
Today we may see ES to go up to retest Monday’s high area. But lately internal strength has been waning which indicates that our market is forming a round top pattern. Small range moves to kill time characterizes the current market behavior.
To see more of Nat’s market analysis and receive her free weekly preview, visit www.naturus.com. Free registration required.
ESZ0 Daily chart
ESZ0 Intraday – 60 minute bars
