Wednesday closed the day with the Nas Composite red, but the Nas 100, S&P 500 and Dow green, very modest red and green on the day. Not a big mover again today! Volume did increase on the Nasdaq and futures over Tuesday's action but the NYSE fell just under Tuesday's. The TRIN increased late day to close at 1.38 bearish on the day. The VIX closed at 27.72 down 1.09. Gold closed up $2.10 to $1087 and oil up 76 cents to $80.36 a barrel.
The bulls had an early advantage by jumping out ahead on a gap and go move in the first half hour. The bulls never relinquished control until after the Fed announcement. Even that was a slow motion but took the market near the lows by days end. Charts are still signaling some weakness and not letting the bulls run to far today. Cisco (CSCO) reported after the bell and the stock traded up about 63 cents. 65 minute charts are still signaling downside, while the daily is a little more neutral and undecided. The Fed didn't really give us that spark we were looking for to excite the market, volatility wasn't any larger than yesterday's narrow range day. Which is a let down for us, but the remainder of the week has a lot of economic data to get things moving.
Wednesday we tested the weekly 1700 on the NQ and ES 1050 pivots. That move marked the top for the NQ, ES did trade over and hung in that channel around 1050 for most of the day. Leading to a very large value area to rotate around into Thursday. The NQ and ES still have gaps open, the TF did fill. Further downside into Thursday is still the tone to watch for. The pre market data could set a different tone, but until we see volume supporting the upside that will be suspect for us. The ES over 1053.75 would alter that bearish tone, the NQ over 1699.5. The ES breaks 1032.75 and the NQ 1660.75 our downside is likely to accelerate.
Economic data for the week (underlined means more likely to be a mkt mover): Thursday 8:30 Unemployment Claims, 8:30 NonFarm Productivity, 8:30 Prelim Unit Labor Costs, 10:30 Natural Gas Storage, Friday 8:30 Non Farm Employment Change, 8:30 Unemployment Rate, 8:30 Average Hourly Earnings, 9:45 FOMC Member Evans speaks, 10:00 Wholesale inventories, 3:00 Consumer Credit, 3:00 FOMC Member Duke Speaks
Some earnings for the week (keep in mind companies can change last minute: Thursday pre market CAH, CI, CDE, CVS, FTO, IMAX, ISIS, KG, MGM, NDAQ, NGS, OMG, SLE, SMG, WEN, WWE and after the bell ATVI, ATML, NILE, CHINA, CROX, HANS, IGT, JDSU, NVDA, SMTC, SBUX, JAVA, SUN. Friday pre market LPNT, SEP, SUP and after the bell AES.
NQ (Nas 100 e-mini) Thursday's pivot 1687.75, weekly pivot 1700. Support: 1680.50, 1674.75, 1669, 1664.50, 1660.75, 1656, 1650.25, 1646.50-1644.25, 1638.75, 1632.75. Resistance: 1689, 1694.75, 1699.50, 1704.50, 1711.75-1714.75.