Watch the BKX and SOX indices
Friday closed the week with mixed results. Nasdaq 100 and Nasdaq Composite closed the day up and week down. S&P 500 closed the day and week green. Dow was up on the week, but red on Friday. Volume also split on the week with the NYSE being higher than last week and the Nasdaq lower. Friday’s volume was pretty anemic leaving us in tight ranges and low volatility after a week start on the day.
Crude closed down Friday to close at $56.82 —1.68 on the day. We haven’t seen this level since June 2005. Gold also proving to struggle with the $600 level with a close down on the day -$6.20 at $596.40. $600 will be resistance to continue to watch then up to 608 on gold.
Monday we need to watch Banks for strength and SOX to find some direction. The SOX closed under the 50dma and will give tech some problems. A lot of earnings hit the semi’s last week and they either regain some strength or we’ll see the market drift lower with them. Banks and brokers are still holding up which are the other significant sectors in the market. Hate to see tug of war, but typically financials are quiet into FOMC meeting so that will likely let tech rule and at the moment that is looking a little bearish. A correction would not be bad for the market and pull off these highs into the announcement Wednesday. So for now my bias is more bearish than bullish and to keep things light until after FOMC.
Economic data for the Week of October23rd — October 27th: Monday nothing due out, Tuesday nothing due out, but the FOMC two day meeting starts, Wednesday 10:00 Existing Home Sales, 10:30 Crude Inventories, 14:15 FOMC Policy statement due out, 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): Monday pre market — T, F, HAL, XRX, during market hours AXP, after the bell — AMGN, DSPG, LNCR, NFLX, TXN, VECO, WCN. Tuesday pre market — AKS, ALK, AMTD, EAT, CP, CME, COH, CFC, DD, JBLU, LXK, LU, MDC, PCAR, PD, TZOO, USG, and after the bell — AMZN, CTX, ESLR, ESRX, FLEX, GNSS, IDTI, KLAC, PNRA, QLGC, STX, TIN, ULTI, WBSN, XTO. Wednesday pre market — MO, BIIB, BA, CRA, CL, GM, HET, IMCL, PFCB, TASR, WMI, WLP, WY, during market hours BUD and after the bell — AEIS, AFFX, BOBJ, CRUS, ERES, LSI, MTH, MCHP, PHM, SFNT, USPI, VAR, WMGI, ZMH. 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) Friday’s weak start pushed the market down only to rebound again and close near the highs. Weekly pivot of 1373 is the bottom of the triangle we saw grinding out the past few days. Monday’s pivot is 1373.5 so we can bet we’ll see 1373-1373.5 a few times on Monday. My bias going into Monday’s open will be to watch for downside then buyers again. The week left us pretty much in range and wound up, with the FOMC meeting results on Wednesday we are likely to see more winding Monday and Tuesday. To keep us in range and quiet. Second half of the week should pick up in range and volatility.
Support: 1373, 1371, 1367.75 and onto 1364. Resistance: 1375.25-1376, 1378.25, 1382.25.
SOX (Semiconductors) closed —1.86 at 447.23 with an inside day. Support: 444.13, 439.39, 428.86. Resistance: 449.79 50dma, 456.67. 460.54, 464.41, 469.93.
BKX (Banks) closed -.10 at 113.21. Support: 112.67, 112.23 50dma, 111.30. Resistance: 113.53, 114.05, 114.43, 114.91.
Good trading to everyone.
Teresa Appleton has traded equities and options for
nine years and futures for seven. She founder and CEO of TradeLogic, LLC. For
more information about Teresa and the training she offers stock, options and
futures traders,
click here.