Economic Reports to Guide Today’s Trading

Wednesday brought more bulls out and gave us a little more volume to leave an accumulation day across the broader markets. The volume is still incredibly light, it was just slightly higher than yesterdays anemic day. The Dow pushed to an all time new high closing over 12,500. The S&P 500 is just under six year highs and the Nasdaq while closing green, it is still lagging behind the other two markets.

Crude closed down 76 cents on the day to close at $60.34. Geo political pressures seem to be on the back burner by traders for now. Thursday we’ll see the inventories to see where supply is so that may move the pot up to the front burner. Gold was up on the day to close up $3.40 at $630.30.

With President Ford passing away the NYSE has a dilemma to deal with. Friday the funeral will start in California, then lie in state at the US capitol over the weekend. With Monday as a holiday there is no word on when the funeral is set for yet (at the time I’m writing this). It will be either Tuesday or Wednesday. The tradition of the NYSE since the death of President Ulysses S. Grant is to close trading out of respect. BUT since Monday is a holiday for the markets that would leave the markets closed for four days if the funeral falls on Tuesday. The markets do not like to see more than three down days, so it is likely to be a half day instead of a full day if it falls on Tuesday. We have to await the decision on DAY for the funeral and then see how the NYSE handles the closure. So that may start next weeks trading VERY light.

Thursday a little more economic data for the market to focus on and hopefully provide us with more movement. Wednesday’s gap and go showed the bulls are willing to buy still and push to regain last weeks losses. Thursday the data will set the days tone, we are at resistance as we closed Wednesday. Which leads us to a nice pullback which we did not see on Wednesday. Gap and go days tend to crawl when the volume is light. A pullback early Thursday will let the bulls step in. We do have an open gap down there still which will be a magnet for any disappointing data to give the market support and a pullback.

Data for the Week of December 25th— 29th
08:30 Initial Claims , 10:00 Consumer Confidence, 10:00 Existing Home Sales, 10:30 Crude inventories, Friday 10:00 Chicago PMI, 10:00 Help Wanted Index.

Some earnings for the week: lightest week of the year, only one company is on the calendar for the week and that is LTRE Thursday pre market.

ES (S&P 500 e-mini) Thursday’s pivot is 1435.50, the weekly is 1428.50. Intra day Support: 1435.50, 1433.75, 1432.25, 1428.50, 1425.50. Resistance: 1439, 1440.25, 1442.25, 1444, 1448.50, 1450.50. 60 minute chart is below.

Everyone have a great trading day.

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.