Looking for a Pullback This Week

Friday closed with a narrow range green day on lighter volume. Very digestive activity throughout the day. Nasdaq 100 and Nasdaq Composite both inside days closing near the highs. The S&P 500 traded higher but in a narrow range. Dow closed red, the only broader market to see red with a narrow range. Gold closed down $11.50 at $651.60 after the big rally on Thursday. Crude rallied and closed up $1.67 at $58.97.

The week ahead doesn’t have as much economic data or earnings as we’ve seen over the past few weeks. I don’t think that will really impact volatility, but could slow things down for a few days. The market is still digesting Wednesday’s move off the FOMC meeting. Bernanke speaks Tuesday, which will have all ears on each word regarding soft landings and inflation.

The SPX closed with divergence and the VIX at just over 10. Very low level showing a lot of complacency and each time we’ve seen these low levels the market pulls back. However I don’t expect that without some strength off Monday’s open first. So lets look for upside off the opening into resistance and then for a pullback to work us out of this narrow range and move the market around.

Economic Data for the week of February 5-9: Monday 10:00 ISM Services, Tuesday no data is due out, 01:00 Chi Fed Reserve Bank Pres Moskow to speak, 01:30 Federal Reserve Chairman Ben Bernanke to speak, 03:30 SF Fed Reserve Bank Pres Yellen to speak, Wednesday 08:30 Productivity Prel, 10:30 Crude Inventories, 15:00 Consumer Credit, Thursday 08:30 Initial Claims, 10:00 Wholesale Inventories, 10:30 Natural Gas Inventories, 12:00 Chain Store Sales, 04:30 Money Supply, Friday no data is due out, 08:45 St Louis Fed Reserve Bank Pres Poole speaks, 01:00 Dallas Fed Reserve Bank Pres Fisher speaks.

Some earnings for the Week: Monday pre market BEAV, CTSH, HEW, HUM, IPS, OSTK, PCH, TIN and after the bell APC, BLKB, LVS, PFG, SOHU. Tuesday pre market AVP, DUK, ELNK, IACI, MYGN, TYC, and after the bell AVNX, BBBB, CELL, BRKS, BOBJ, CAKE, CSC, XRAY, IPAS, LNC, PLNR, TZOO. Wednesday pre market ACS, APOL, BCRX, CI, ICE, OSIS, RL, SKYW, WHR and after the bell AFFX, ACL, ALKS, EQIX, MXIM, OIS, PACR, PRU, SCSS, SINA, SNIC, ULTI, UTI, DIS. Thursday pre market AET, LNT, UHAL, CSK, DO, DJO, ESRX, FLIR, HNT, LVLT, MAR, MLM, MMS, MDTH, MLNM, PENN, PEP, Q, TBL, TOL, WLT, WMG, WMI and after the bell ANDE, BMC, BRCM, ELY, DRIV, ENER, GTW, LPNT, MFE, NAPS, PNRA, TQNT, UNTD. Friday pre market AG, CVH, HAS, MA, QMED, WY.

ES (S&P 500 e-mini) Monday’s pivot is 1452.00, the weekly is 1443.75. Intra day support: 1451, 1449.25, 1446.25, 1444- 1443.50 (gap fill), 1441.25. Resistance to look for: 1455, 1456, 1457.50, 1458.75, 1461. 60 minute chart is below.

Let’s have a GREAT week.

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
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