GDP report will set the tone for today
Nice green day across the broader markets. Volume came in mixed, the Nasdaq was higher than yesterday leaving an accumulation day. The NYSE volume was lighter and did not show the participation. Perhaps some hesitation ahead of Microsoft earnings and the GDP data on the big caps. The Dow did manage to set another new all time high today. After hours the Dow futures fell off a GM downgrade, so we’ll watch that tomorrow. The S&P 500 closed near a six year high.
Crude fell $1.04 to close at $60.36 after a big rise yesterday on inventories falling short of expectations. But today could not follow through, showing yesterday was some short covering. Gold rallied to close up $9.00 at $599.80, I hear that $600 knocking again.
GDP will set the tone into Friday. I do think we will see some profit taking and limited range into Friday. I think we will see movement but we have had a big week and now with the FOMC behind us, there is no rush into the end of the month next week. Look for upside into the first hour and then some drifting.
Economic data for the Week of October23rd — October 27th: 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): Friday pre market BHI, CAH, COCO, CVH, OS, SPSX and after the bell — LPNT.
ES (S&P 500 e-mini) Thursday opened strong and into the 1392 resistance that I outlined last week to then fall seven points. Then those strong bulls came in and bought enough to raise the market to pull us up to new highs. Closing very strong and just over that SAME 1392. Very healthy 10 point move off the lows, giving us reason to be watching economic data going into Friday along with profit takers. It has been a big week and some reason to pause and pullback eventually has to work its way into this market. Fridays pivot is 1391, that is convergent with 38.2% of Thursday’s range. I’m sure we will see that several times into Friday. Intraday Support: 1391, 1388.75, 1386.5, 1384.50, 1383, 1381.75 and 1379. Resistance: 1393.75, 1395.25, 1397, 1398.5 and 1400.
BKX (Banks) closed +.52 at 114.35. Support: 113.72, 113.33, 112.95, 112.50 50dma. Resistance: 114.43, 114.91, 115.43.
Good trading to everyone and have a wonderful weekend. Remember you don’t have to trade all day FRIDAY!
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