Monday started the week with a modest loss on mixed volume. The NYSE was higher than Friday and the Nasdaq was lighter. Market breadth (A/D and U/D) closed on the lows and the TRIN closed at 2.20 for the second straight day over 2. The VIX closed at 24.31, just under the 50dma at 24.59. Gold closed down $13.20 to $1043.20 and oil down $1.87 to $78.63 a barrel.
Nas Composite dropped the 10dma, CCI is at 0 line support, stochastics are pointed down still, RSI down to 54 and MACD is slightly pointed down, but isn't opening up. Nas 100 also dropped the 10dma and sits just over the 20dema, CCI is at 58, Stochastics dropping, MACD lines came together and crossed and the RSI is down to 58. Sitting just over last weeks 1732.02 lows and just over 38.2% Fibonacci retracement support. S&P 500 fell through last weeks low and closed under the 10dma and 20dema, the CCI closed at -38, MACD pointed down, RSI at 50 and stochastics pointed down at 33. Giving up almost half of Octobers gains. The Dow is at 38.2% retracement of the October gains dropping last weeks lows. Stochastics are pointed down, CCI is at -8, MACD is pointed down and RSI at 61.
With the fall today only the Nasdaq 100 and Composite held last weeks low and 38.2%. The S&P 500 giving up 50% of October gains off the weakness in financials accelerating the drop. The Dow still holds over 38.2% with the Nasdaq, leaves us to look to the Nasdaq for leadership. ANY sign of weakness and this maybe a rocky week for the bulls, one concern coming into Tuesday will be the drop in BIDU. Internets are important to the markets and BIDU fell from a close of $423 to $376 in afterhours trading. UGLY fall! That will pressure the Nasdaq and likely lead to a weak opening on the markets. With the TRIN over 2 and a weak opening we can look for a bounce early on in the market. Watch for 1731 support, break there we can look for a much larger drop.
Economic data for the week (underlined means more likely to be a mkt mover): Tuesday 4:30 am Treasury Sec Geithner Speaks, 10:00 Consumer Confidence, 10:00 Richmond Manufacturing Index, Wednesday 8:30 Core Durable Goods Orders, 8:30 Durable Goods Orders, 10:00 New Home Sales, 10:30 Crude Oil Inventories, Thursday 8:30 Advance GDP, 8:30 Unemployment Claims, 8:30 Advance GDP Price, 10:30 Natural Gas Storage, Friday 8:30 Core PCE Price Index, 8:30 Employment Cost Index, 8:30 Personal Spending, 8:30 Personal Income, 9:45 Chicago PMI, 9:55 Revised UoM Consumer Sentiment, 9:55 Revised UoM Inflation Expectations.
Some earnings for the week (keep in mind companies can change last minute: Tuesday pre market AKS, BJS, BP, IACI, LLL, OSIS, PCAR, SCHN, TUES, X, UA, VLO, V, and after the bell ADVS, APOL, BBOX, CEPH, DWA, ETFC, MEE, NSC, PNRA, PDLI, SUNH, TZOO, ULTI. Wednesday pre market ASH, COP, GD, HES, IP, LVLT, MSO, Q, SAP, SEPR, WLP, and after the bell AEM, AKAM, CTX, XRAY, ESRX, FSLR, JDSU, LSI, OII, PACR, RYL, VARI, XL. Thursday pre market AGN, AEP, BCRX, CME, COCO, XOM, K, MGM, MOT, MYL, NEM, ODP, ZEUS, PDE, PG, S, TSM, ZLC and after the bell ADPT, ACS, ATML, DLLR, ERES, KLAC, MXIM, MFE, MET, MSTR, RNWK, SPF, TSRA, USTR, VAR, VSEA, WYNN. Friday pre market CVX, CVH, D, DUK, NYX, SNE, UPL, WY, YRCW and after the bell SHPGY.