Below is a sample of our Daily Commentary. To get this comment, and our daily coverage of 15 additional markets and trade ideas, visit futures-research.com for your free 2 week trial!
While the Japanese stock market didn’t exactly follow the US action from Tuesday with a big range up move, the overnight action in stocks remains positive in the wake of better than expected Intel earnings. With positive scheduled data flows from the US on Tuesday and a very impressive string of earnings released over the last 24 hours, the bull camp seems to have retained the edge into the opening today. However, the market will see some cyclical earnings reports today and the market will also have to face potentially discouraging data from the US just after the opening today and that could dent the preexisting bullish attitude somewhat. However, we doubt that the market will embrace the poor cyclical earnings news from American Airlines and other consumer companies, but we also don’t think that the market will completely ignore signs that the recovery is set to be a very long slow affair.
S&P 500: The S&P gapped up overnight off the Intel earnings and that type of technical formation could easily result in some follow through buying in the US trading session. However, the market might have to suffer through a temporary setback off the early highs, in the wake of the scheduled US data flows at 8:15 cst. However, there should be very little resistance on the charts until the 919.60 level and perhaps not until the 928.20 level. In order to rise to the second level of resistance, might require a rather bullish surprise from the scheduled data or something overtly up beat from the Fed FOMC meeting minutes.
DOW: With a favorable overnight tilt remaining in place that should leave the September Mini Dow in an upward bias into the scheduled US numbers this morning. With the Intel earnings after the close yesterday coming in positive and the GM sale of Hummer apparently allowed by the Chinese government overnight, there would seem to be more bullish forces at work into the US opening today than bearish developments. In fact, unless the Industrial Production/Capacity Utilization readings are much weaker than expected, there might be little in the way of resistance on the Mini Dow charts until the 8,500 level. Near term critical support in the September Mini Dow moves up to 8,334 today.
NASDAQ: The Nasdaq clearly got a distinct and rather impressive lift from the favorable Intel earnings overnight, as the Intel earnings supposedly improved rather down beat back to schools sales expectations. Given the patently bearish attitude toward the tech sector and the Nasdaq over the prior two weeks of trade, we have to think that the Nasdaq is due a bit of technical stop loss buying today. While the September Nasdaq has initial resistance up at 1497, we would not be surprised to see the trade attempt to push the Nasdaq all the way back up to the even number 1500 level.
TODAY’S MARKET IDEAS: The bulls have the edge off the direction of key US earnings news.
