Crude and gold are the sectors to follow today
Wednesday gave us volume and a rise in price, leaving the NYSE and Nasdaq with accumulation days.
FOMC announcement stayed pretty much true to the prior statement giving the market some relief for no change and comfort that things are where they should be. Keeping inflation contained and growth moderate will keep rates at 5.25% and leave the market to focus on growth through earnings.
Crude climbed Mount Everest today to close at $61.40 up $2.05. The decline in supply gave the boost and oil never looked back once the inventory data was released. Gold also higher on the day up $3.20 to close at $590.80.
Past two weeks we are seeing crude and gold trade together. Inflation averse traders are said to buy gold today, but we’ll see if they are still around tomorrow. Remember $600 is our big level.
Thursday look for early strength and then a pullback. Wednesday’s action ended with the bulls strong, so continuation into resistance would be what we watch for. Semi’s participated well with the boost from KLAC today. After hours the news was pretty bullish and upbeat. Earnings continue to roll out this week and most are doing well. We’ll need to see tech come in strong and forecast Q4 as upbeat, instead of the slow down news we were getting earlier in the week. To continue seeing the upside. A corrective light volume pullback ahead of Friday’s GDP would be good for the market after we open and hit resistance.
Economic data for the Week of October23rd — October 27th: Thursday 08:30 Durable Orders, 08:30 Initial Claims, 10:00 Help Wanted Index, 10:00 New Home Sales, Friday 08:30 GDP-Adv, 08:30 Chain Deflator Adv., 09:50 Mich Sentiment Rev.
Some earnings due out this week (remember you should verify any data, it can change quickly): Thursday pre market — EYE, AET, BMY, CELG, CRDN, COP, CNX, XOM, LLL, LIZ, MEDI, MSTR, MLNM, PENN, QLTI, SEPR, S, HOT, LCC, XMSR, during market hours THI, WEN and after the bell — CNXT, ELX, GOL, ISRG, IRBT, LSCC, MSFT, ONNN, PLAY, SOHU, SUNW, UHS, VSEA, WEBX, WEBM, YRCW. Friday pre market BHI, CAH, COCO, CVH, OS, SPSX and after the bell — LPNT.
ES (S&P 500 e-mini) Wednesday left us with 25.75 points on this rise, from our last pullback from the 17th (1364). Each leg up since mid September has been 27-29 points. That leaves us to look for 1392 as resistance, that is a price projection as well as a completed leg up. Each pull back has been 12.25-14.50 points which has been the weekly pivot each week. This week a pullback of 14 points would leave us at 1378, which is still well over the weekly pivot of 1373. So if we hold true to pattern we will not test the weekly pivot, if we pullback deeper we will see the pivot. So early on we look for some strength to boost us up a few more points into resistance and a pullback. . Intraday Support: 1386.75, 1384.50, 1383, 1381.75 and 1379. Resistance: 1389.75, 1390.25, 1392.50, 1395.
Everyone have a great trading day.
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