Pre-Market Data Should Remain Important

Thursday was off to a slow start and a sinking market. Which recovered and rallied to close on the highs. The Nasdaq stepped up to lead the market today and performed very well. Volume however was lighter than yesterday on the NYSE and Nasdaq, so we do not have an accumulation day, but a nice green day across the broader markets.

Crude fell after a small rise in gas supply came out at 10:30 sending oil down $2.73 to close at $55.59 on the day. Weakest level we’ve seen oil at since July 2005. Crude is seeing much of this weakness off the unusually warm weather in the East. So this is a very thin line to walk, any weather change could swing that pendulum quickly. Gold closed down $3.70 at $626.10. Metals are still weak showing some follow through from yesterdays drop.

Friday we have to look for the pre market jobs data to set the tone. Thursday’s close left some divergence and the final hour left potential reversal candles, right into resistance. However, the data could change this tone and move the market. We’ve been in range for three weeks and now that we’ve closed the year and had a strange partial week. This could be the piece of the puzzle to move us. Will we get far on a Friday of a short week? I’d like to think we can, the charts say pullback and see if this support holds. We have to see the data and the markets reaction before we start positioning. So I’ll stay neutral on the bench and see you all in the morning EARLY.

Economic data for the Week of January 1st — 5th Friday 08:30 Nonfarm Payrolls, 08:30 Unemployment Rate, 08:30 Hourly Earnings, 08:30 Average Workweek.

Some earnings for the Week of January 1st — 5th Friday pre market AZZ, GPN and SGR. Still a very light week of earnings.

ES (S&P 500 e-mini) Fridays’s pivot is 1425.50, the weekly is 1429.25. The support at 1416.50 held us again today off the early weakness. The market stayed in range basically today with some buying off the lows to push us around some. The final hour did not scream bullish to me, but with the jobs data due in the pre market I can’t really go into Friday with a bias. Intra day Support: 1425.75, 1424, 1422.25, 1419.75, 1416.50. Resistance: 1431, 1435, 1436.25, 1438.75, 1440, 1442.25, 1444.25. 60 minute chart is below.

ER (Russell 2000) Friday’s pivot is 792.80, the weekly is 784.30. Intra day support: 792.9, 791.2, 789.5, 787.10, 784.10. Resistance: 797.6, 801.2 and 805.90. 60 minute chart below

Everyone have a great day and weekend.

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,

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