Wednesday was split on the day with the Nas 100 and Nas composite green on the day leaving the S&P 500 and Dow with modest losses. Volume was lighter than Tuesdays on the NYSE and Nasdaq, futures came in heavier. Futures volume was the best we've seen in the past three sessions. The TRIN closed neutral at .94 and the VIX another new low on the year closing at 23.47. Gold closed the day higher at $953.70 +6.80 and oil down 25 cents at $63.56 a barrel.
Overall the day didn't get far in either direction and kept the range very tight. Tuesday left the indexes with hanging men, the Nas Composite and Nas 100 did not confirm that reversal candle. S&P 500 and Dow with the very narrow range and small drop did confirm. Not a lot of conviction there with such a small drop, but it did give us something to look at into Friday. After the bell QCOM and EBAY traded higher off earnings, SNDK took a nose dive and that maybe the final shoe to get the SOX a pullback. Daily stochastics remain over 98 on the NDX, COMPX and SOX, along with an RSI in mid 70's and divergence on the CCI. We still await the pullback or a lot of sideways digestion to get things on the straight road. The VIX is 2.28 off the 10dma, which is 9%, that 10-12% move is when we are wound for a snap, so looking for that along with the other shoe to drop and pull us in.
Thursday will bring us the first data we've seen this week to give us a look at the unemployment claims and onto Existing homes later in the morning. Earnings continue to roll out and will bring even more for the market to look at. MMM and MCD will be in focus early and after the bell AMZN along with KLAC and MSFT to round out a busy day after the bell. After 9 consecutive up days on the Nasdaq and 7 of the last 9 on the SPX makes for a lofty lift on this market. We still look for a setup to come off this lift for some retracement and give the bulls a rest. The weekly pivot did not test for the ES and NQ that would be a deep pullback, under 38.2% so that isn't likely to come in this week. Unless we see some serious panic profit taking, so an orderly pullback is all we are looking back into 38.2% into the second half of the week.
Economic data for the week (underlined means more likely to be a mkt mover): Thursday 8:30 Unemployment Claims, 10:00 Existing Homes, 10:30 Natural Gas Storage, Friday 9:55 Univ Of Michigan Consumer Sentiment, 9:55 Univ Of Michigan Inflation Expectations.
Some earnings for the week (keep in mind companies can change last minute: Thursday pre market MMM, T, BG, CELG, CIT, CME, FITB, F, JBLU, LLL, MCD, NEM, NUE, OXY, PENN, PFCB, POT, RS, R, TRA, UPS, WYE, XRX, ZMH and after the bell AMZN, AXP, BRCM, BNI, CA, COF, CAKE, JNPR, KLAC, LSCC, MCHP, MSFT, NFLX, PMCS, RMBS, RFMD. Friday pre market BDK, IR, SLB, and nothing after the bell.
NDX (Nasdaq 100) closed +11.99 at 1565.00 Support: 1534.78, 1504.63, 1470.99, 1451.85 fills gap. Resistance: 1584.17, 1608.86, 1639.82 50% on weekly, 1650.60, 1685.49
SPX (S&P 500) closed -.51 at 954.07. Support: 940.85, 929.13-925.25, 905.31 fills gap. Resistance: 956.23 6/11 swing high, 979.87-989.97, 1009.94-1014.14 big 38.2% level
INDU (Dow) closed -34.68 at 8881.26. Support: 8818.65, 8737.62, 8679.94, 8623.20. Resistance: 8931.69, 9062.47-9091.35, 9124.88, 9370.97, 9422.10 big level.