Daily market commentary for Thursday, Oct 5, 2006
Written By: Teresa Appleton Stock Forum ID: Teresa
Wednesday did not mess around to get us moving to rally. Just when you expect a quiet day we put in a huge expansion rally day on higher volume for another accumulation day on the NYSE and Nasdaq. We needed semi’s and tech to step up and they did today.  Very strong performance across the board today leading the way with Nasdaq. Dow broke the prior record and closed in triple digit gains.Â
Crude closed up 73 cents on the day at $59.41. Which was a huge come back after dropping down to $57.70 early in the day. OIH fell into $119.21 and bounced off, I highlighted that support last night. Nice hammer on the day so we’ll look for the high to break 122.76 and to continue higher to confirm that reversal candle. Gold also fell $14.80 to close at $566.70. Yikes and people still are saying 800’s by year end. I say that rally better come soon.  GLD which tracks gold futures, but trades like a stock (it is an ETF, but usually ETF’s are a basket of stocks that represent the index, the GLD trades off gold futures) is at Junes lows, we could see some support here 55.00 and that is also 61.8% fib support. A break here would lead us down to 53.21 so look out below if we don’t find some upside here. Resistance is 57.35 and onto 58.46.Â
Thursday is another light day on the economic front. Friday’s job’s data will be the biggie and the market will listen to that. Given that and the rise we saw today I am looking for a slow day Thursday and for the market to pause. We are very extended and right under resistance as you can see on the charts below. So a pause into Thursday gives the market time to wait for Friday’s data.Â
Week of October 2 – October 6  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.
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Some earnings for the Week of October 2nd – October 6th  Thursday pre market CMN, STZ, HELE, MAR, MTRX, MERX, MTN and after the bell SLR. Friday nothing expected out.Â
Lets look at some charts:
NDX (Nasdaq 100) closed +40.85 at 1681.14. Support: 1658.27, 1644.83, 1635.26, 1623.07, 1626.36 200dma, 1605.14 and 1584.49. Resistance: 1682.55, 1694.12, 1701.98, 1716.42 and 1721.13.
SPX (S&P 500) closed +16.11 at 1350.22. Support: 1341.26, 1335.86, 1327.57, 1313.58, 1303.62. Resistance: 1355.70, 1361.77, 1365.90, 1381.06.Â
Good Trading to everyone.
Teresa
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