A Short, But Volatile Week Ahead

Friday came to a close on a nice green day, but again lighter volume.
The market left us with a pretty quiet day leading into a three day weekend. Nasdaq 100 and Nasdaq Composite are attempting to breaking the top of the range the market has set in for eight weeks. While the S&P 500 and Dow closed there fifth week in range. Leaving us with tech trying to wake the market up. With some big tech reporting in the week ahead this should prove to either break us out or failure up here, but resolve this range we’ve been stuck in.

Crude rallied on Friday to close up $1.11 at $52.99 on the day. Still down on the week and year with lackluster concerns for supply and warmer than normal temperatures contributing to the drop. Gold rallied after Thursday’s pause day to close Friday up $13.00 at $626.90 on the day.

Tuesday kicks off a big week economically and earnings. The market ran hard last week and on light volume. We are due to pullback and getting close to short term overbought conditions. Tuesday is the lightest day for big data releases, so could be our settling digestive day on the week. Along with plenty of tech reporting this week there are a lot of banks/brokers. So no sector that is big will be left untapped this week. Just to really throw us a little extra kick we have Chairman Bernanke speaking and equities options expiration this week. Early into Tuesday I will be watchful of a pullback and as the day progresses look for some nervousness and a waiting market to hear Intel’s earnings after the bell.

Economic Data for the week of January 15 — 19 Monday US markets are closed for Martin Luther King day, Tuesday 08:30 NY Empire State Index, Wednesday 8:30 PPI, 08:30 Core PPI, 09:00 Net Foreign Purchases, 09:15 Industrial Production, 09:15 Capacity Utilization, 13:00 Housing Market Index, 13:00 Fed Reserve Gov Mishkin to speak, 14:00 Fed’s Beige Book, 14:50 SF Fed Reserve Bank Pres Janet Yellen to speak, 17:30 St Louis Fed Bank Pres William Poole to speak, Thursday 08:30 CPI, 08:30 Core CPI, 08:30 Housing Starts, 08:30 Building Permits, 08:30 Initial Claims, 10:00 Leading Indicators (isn’t confirmed), 10:00 Fed Chairman Bernanke to speak before the Senate, 10:30 Crude Inventories, 12:00 Philadelphia Fed, 16:30 Money Supply, Friday 08:00 Fed Bank President Lacker will speak, 10:00 Mich Sentiment Prel/Consumer Sentiment, 10:30 Natural Gas report, 01:15 Kansas City Fed Reserve President Hoenig to speak

Some earnings due out for the Week: Monday US markets are closed. Tuesday pre market AMTD, SCHW, CBH, USB, WFC and after the bell INTC, LLTC. Wednesday pre market ASML, CIT, JPM, LEN, PH, PGR, LUV, STT, WIT and after the bell AAPL, LRCX, NVEC, SOV, WM. Thursday pre market AIT, BK, CMA, CAL, FITB, HOG, IGT, MER, NVS, PPG, UNH and after the close COF, CREE, ETFC, FNB, IBM, ICOS, XLNX. Friday pre market C, FAST, GE, KEY, MOT, SLB, STI and WL.

ES (S&P 500 e-mini) Tuesday’s pivot is 1437.50, the weekly is 1431.50. Nice bullish tone to take out last weeks high at the very end of the day. Intra day support: 1439.50, 1437.75, 1436, 1433, 1430.50. Resistance to look for: 1442, 1443.75, 1444.25, 1447.50, 1453. 60 minute chart is below.

I hope everyone had a great long week and a wonderful week, it should be a volatile one.

Teresa Appleton has traded equities and options for
nine years and futures for seven. She is founder and CEO of TradeLogic, LLC. For
more information about Teresa and the training she offers stock, options and
futures traders,

click here.