Beware of further pullbacks today
Friday closed the day red, but the week still held the earlier gains to give the broader markets a green close. Volume came in lower on Friday for the NYSE and Nasdaq, however for the week the NYSE was lower and the Nasdaq was higher than the prior week.
Aside from the light volume drop on Friday the broader indexes were left with weekly divergence and also 60 minute charts show possible bear flags (we need a few more hours to see this finish forming). This could signal further pullback into Monday’s opening. Plenty of economic data releases this week with the slowing of big earnings, this should provide volatility. Fridays payroll data will be the biggest piece of data, but the PMI and ISM are also closely watched.
Economic data for the
Week of Oct. 30th— Nov 3rd: Monday 08:30 Personal Income, 08:30 Personal Spending, Tuesday 08:30 Employment Cost Index, 10:00 Chicago PMI, 10:00 Consumer Confidence, Wednesday 00:00 Auto Sales, 00:00 Truck Sales, 10:00 Construction Spending, 10:00 ISM Index, 10:30 Crude Inventories, Thursday 08:30 Initial Claims, 08:30 Productivity-Prel., 10:00 Factory Orders, Friday 08:30 Nonfarm Payrolls, 08:30 Unemployment Rate, 08:30 Hourly Earnings, 08:30 Average Workweek, 10:00 ISM Services.
Some earnings for the week of Oct 30th — Nov 3rd: Monday pre market — SCHN, SKYW, VZ and after the bell — NILE, GOL, ODSY, OIS, SPSX, SBL. Tuesday pre market — LNT, AEP, BIIB, BJS, ITWO, INFS, IACI, MRO, MSO, PNC, PG, Q, RCL, SAFC, X, UAUA, UARM, VLO, and after the bell — BIDU, BBOX, CMG, DWA, EOG, OII, WYNN. Wednesday pre market — AGN, BKC, CI, DVN, GRMN, MMC, MA, MYL, NEM, NBL, ZEUS, PTEN, TWX, UPL, ZBRA and after the bell — AHS, XRAY, GPRO, LVS, MXIM, OPNT, OSUR, PRU, WCG. Thursday pre market — AGU, ABC, BBI, CSK, DJO, ENCY, IP, MGM, OSG, THE, RIG, VPHM, and after the bell — APCC, BIO, CEPH, CSC, DLLR, ERTS, HLTH, ICOS, IPAS, JCOM, LF, PDLI, QCOM, SINA, WEBM, WFMI. Friday pre market — DUK, OMG, THQI and after the bell — LNG.
ES (S&P 500 e-mini) Friday’s red close was not without a lot of struggle, we held on the 60 minute 20ema for half the day, then finally came through the support. Monday’s pivot is 1386, the weekly pivot is 1384.25. Look for pullback early into 1381.75 and then if that support breaks we should see much deeper pullback.
Intraday Support: 1381.75, 1379, 1375.5, 1373 and 1370.45. Resistance: 1386.50, 1391-1392 and 1395.25. 60 minute chart below.
NDX (Nasdaq 100) closed —26.46 at 1717.61 after getting within 16 points of the years highs, we could be seeing a big engulfing pattern here, also we’ll watch that shooting star for confirmation. Usually I show daily charts, but this is a WEEKLY view tonight. Support: 1700.42, 1684.43, 1669.95, 1659.03. Resistance: 1738.72, 1745.79, 1750.21, 1761.46 (Jan 2006 highs), 1797.
Teresa Appleton has traded equities and options for
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