What To Look For Tuesday, Whether The Fed Cuts Rates Or Not….
Paul Letourneau
wrote today’s Stock Market Recap as Daniel Beighley is on vacation this week.
In today’s market, traders had only one thing
on their minds, FOMC. Tomorrow’s Federal Open Market Committee meeting will
answer the traders’ question. A number of prominent Wall Street strategists
began calling for a cut last week, but now the central bank has hinted that it
has no immediate plans to cut rates. In addition, Fed Chief Alan Greenspan has
said repeatedly that he won’t determine monetary policy by what the stock
market’s doing, this according to the Wall Street Journal.
Volume was weak with the Nasdaq trading less than
a billion shares and a little over 1 billion shares on the NYSE.
The Nasdaq Composite
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$COMPQ |
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able to push to new intraday highs by the close. The Nasdaq is holding its
position just above the 20-day moving average at 1304. To the upside, look for
initial resistance at 1315 with secondary resistance at overhead 1322. On the
downside, look for initial support at 1304. The Nasdaq closed at 1306.83 up .72.
The S&P 500
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$SPX.X |
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below its intraday high at (908.64) the S&P 500 closed at 903.79 down 4.83. On
the S&P 500 daily chart support is at 872 with secondary support is at 881.
Overhead resistance is at 872 with secondary resistance at 881.
The Dow Jones Industrial Average
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$INDU |
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is close to breaking its resistance at 8735. Today the Dow closed just below
this barrier at 8688.88, a loss of 56.56. On the daily chart, the Dow has initial
resistance at 8735 and secondary resistance at 8943. Support is at the 20-day
moving average 8372 and secondary support is at 8000. At one point the Dow was
down over triple digits, made a run for a positive close, but couldn’t make
it to the green.
Some of the sectors that pushed the indices
lower, were Airlines
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$XAL.X |
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airline, US Airways, filed for bankruptcy protection Sunday. The news set the
selling tone on Wall Street and sent the sector into decline.Retail
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Semiconductors
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While, Networking, Oil Services
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Pharmaceutical
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$DRG.X |
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Weight Watchers
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out from a base on an expansion of its daily range. WTW is carrying a
3-month
relative strength rank of 93 from TradingMarkets.com
Telefonos de Mexico
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failing out of a counter trend rally on the daily chart. TMX is holding a
3-month
relative strength rank of 73 from TradingMarkets.com.
Doral
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above its resistance line (40) with unusually high volume. Doral is pulling back
from the high. A possible trigger could be of Doral pulls back to the 40 support
line.
Icos Corp
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is breaking out of a cup-and-handle with increasing volume. Icos has a
TradingMarkets.com RS3 rating of 98 and an up trending
ADX of 32. Icos looks to be pulling back from the high. A possible
trigger will be if ICOS tests the 24.50 support.
Guidant
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is forming a cup and handle pattern on the daily chart. GDT has a
TradingMarkets.com RS3 rating of 96 and an up trending
ADX of 32.
Amsurg
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is hitting a 2-month high with increasing volume. Amsurg has a
TradingMarkets.com RS3 rating of 94 and an up trending
ADX of 24.
VF Corp
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is hitting a 2-month high with increasing volume.
There was no economic data today. However
tomorrow we will see Retail Sales for July, the Consensus is 0.3%. And as
mentioned earlier the much anticipated FOMC meeting. The feeling amongst traders
is that the Fed will hold pat on Interest rates.
NASDAQ Breadth at the close
Adv: 1613 UpVol: 436066800
Dec: 1747 DnVol: 477654100
Net: -134 Net: -41587300
NYSE Breadth at the close
Adv: 1483 UpVol: 35059228
Dec: 1733 DnVol: 65660720
Net: -250 Net: -30601492