Daily market commentary for Monday, Oct 2nd, 2006

Teresa

Posted on Sun 1st Oct, 2006 04:42:50 PM

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Written By: Teresa Appleton Stock Forum ID: Teresa

Friday gave the market a pause, lighter volume than we had on Thursday was a bit of a let down for the last day of the quarter and the month.  Closing the week green left us with two consecutive up months for the NDX, COMPX, three consecutive up months for the SPX and the INDU. 

Crude left a red day with a close of $62.91 on Friday.  Leaving a big drop on the quarter.  No real pressure on crude still with quiet weather conditions and Iran for the moment is still not posing any threat to supply.  Leaving the quarter down about 17%.  Gold also closed lower Friday with a close at $604.20 also down for the quarter. 

Monday with some economic data at 10:00 could leave us with a slow opening and for things to pick up after 10:00.  Look for some upside to come in and then for this pullback to continue.  Friday’s down day was a narrow range and even inside bars on many indexes.  So continuation of the downside to get out of overbought conditions should be watched. 

Banks should be watched carefully this week after hitting all time new highs and now consolidating just under those highs.  Three good candidates for some downside will be ZION, BK and COF.  BKX (Banks) closed -.49 at  113.25.  Support:  112.97, 112.29 20dema,  111.70,  111.22 50dma.  Resistance:   113.73, 114.34 and 115.72.

Week of October 2 – October 6   Monday 10:00 Construction Spending, 10:00 ISM Index, Tuesday 00:00Auto Sales, 00:00 Truck Sales, Wednesday 10:00 Factory Orders, 10:00 ISM Services, 10:30 Crude Inventories, Thursday 08:30 Initial Claims, Friday 08:30 Average Workweek, 08:30 Hourly Earnings, 08:30 Nonfarm Payrolls, 08:30 Unemployment Rate, 15:00 Consumer Credit.
Some earnings for the Week of October 2^nd  – October 6^th  Monday nothing expected out. Tuesday pre market PBG, SMSC and after the bell LWSN.  Wednesday pre market RPM, WWW and after the bell BLUD, MU, VTS.  Thursday pre market CMN, STZ, HELE, MAR, MTRX, MERX, MTN and after the bell SLR.  Friday nothing expected out. 
 
Lets look at some charts:
NDX (Nasdaq 100)  closed  -7.46 at 1654.13.  Support: 1642.56, 1632.09, 1627.03 200dma, 1623.43, 1617.64.  Resistance:   1669.26, 1680.52, 1701.98  and 1721.13.

SPX (S&P 500) closed –3.30 at 1335.85.  Support: 1326.70, 1321.73, 1319.52 20dema, 1309.71.  Resistance:  1349.87, 1355.92, 1365.90. 

 Good trading to everyone…..Teresa