Tuesday a narrow range day, that ended with a modest loss in very lackluster action. The market started strong with a lagging Nasdaq and just couldn't find the buyers with the Nasdaq Composite and Nas 100 sitting under yesterday's highs. The S&P 500 and Dow did trade over yesterday's highs, but closed back within Monday's range. With the small loss on the day did some volume, so that leaves us with a distribution day on the NYSE, Nasdaq and futures. The TRIN was .88 on the day which is bullish but approaching neutral territory and had been crawling up slowly throughout the afternoon. The VIX closed at 25.14 up .31 on the day. Gold closed down 10 cents to $994.00 and oil down 23 cents to $66.61 a barrel.
The lackluster Nasdaq contributed to the narrow range with the tech weight on us. Banks and brokers split on the day and left us confused for a large part of the day. Basically it was a very digestive fence sitting day. Onto Wednesday we'll have more opportunities for the market to move out of the range it is parked in. The day will start with early data and onto data after the bell, especially after the disappointing consumer confidence data today.
Each index retraced to 61.8% (SPX 1065.26, COMPX 2136.24, NDX 1730.40 and Dow 9812.50) on the drop we had last week, this is a key resistance and one we'll watch into Wednesday. The market did spike into those levels off the early move and quickly rejected. So that is still the overhead level to watch carefully. Key support for Nasdaq Composite 2076.76 38.2%, Nas 100 1681.43 38.2%, S&P 500 1041.32 38.2%, Dow 9585.46 50% is still on tap for us to watch. Wednesday we should see some follow through on the market, and not this meandering business we had on Tuesday.
With the data it is also end of the month and quarter. That leaves the market with plenty to think about as we close out September. It would require a huge sell off to take the month into red territory, but some correction could come into play. Window dressing for month end has been down 8 of the last 11 day of the quarter. We haven't done a lot in the way of following history lately but keep that in mind.
Economic data for the week (underlined means more likely to be a mkt mover): Wednesday 8:15 ADP NonFarm Employment Change, 8:30 Final GDP, 9:45 Chicago PMI, 10:30 Crude Oil Inventories, 10:30 FOMC Member Lockhart speaks, 12:30 FOMC Member Kohn Speaks. Thursday 7:30 Challenger Job Cuts, 8:30 Unemployment Claims, 8:30 Core PCE Price Index, 8:30 Personal Spending, 8:30 Personal Income, 10:00 ISM Manufacturing, 10:00 Pending Home Sales, 10:00 Construction Spending m/m, 10:00 ISM Manufacturing Prices, 10:30 Natural Gas, All day vehicle sales. Friday 8:30 NonFarm Employment Change, 8:30 Unemployment Change, 8:30 Unemployment Rate, 8:30 Average Hourly Earnings, 10:00 Factory Orders.
NQ (Nas 100 e-mini) Wednesday's pivot 1717.50, weekly pivot 1713. Support: 1710.50, 1705.50, 1701.50, 1698, 1696.75 fills gap, 1688.75-1688 38.2% Resistance: 1719.50, 1722.75, 1727, 1732.50, 1734.50, 1739.50, 1743
Some earnings for the week (keep in mind companies can change last minute: Wednesday pre market PBG and after the bell LWSN, XRTX. Thursday pre market STZ, TSCM and after the bell ACN, MU, SMSC. Friday nothing of interest.