Daily Commentary for Friday, February 2, 2007
Written By: Teresa Appleton Stock Forum ID: Teresa
Thursday gave the bulls another green day, but unlike yesterdays green day it was on lighter volume. Which was expected, FOMC and last day of the month fueled Wednesday high volume move. Thursday was more digestive and range bound than anything. The Dow closed at all time new highs and the S&P 500 closed at October 2000 levels. The Nasdaq is still lagging and is still well off the January highs.
Gold rallied today closing up $5.70 to close at $657.40. Crude very volatile today closing down 84 cents at $57.30. Early gains quickly dropped after the Nat gas inventories were released.
Going into Friday we have big economic data in the pre market. That coupled with the Dow closing just under the upper trend line and the S&P 500 at resistance, could create a pullback. We are still short term overbought after Wednesdays run up, however Thursday did do a nice job of starting the digestive process. With closing at resistance I would expect a quiet opening with some pre market action, then into the 10 data. A pullback into Thursday’s lows at a minimum and then likely to see volume drop off and the day chop a lot. It is Friday and all the build up to Fed probably deserves a quiet Friday and close on light volume.
Economic Data for the Week: Friday 08:30 Nonfarm Payrolls, 08:30 Unemployment Rate, 08:30 Hourly Earnings, 08:30 Average Workweek, 10:00 Factory Orders, 10:00 Mich Sentiment Rev.
Some earnings for the week: Friday pre market AXL, ACI, CVX, ERIC, NYX, R, THQI, WEN. These are just some of the earnings on the week that maybe of interest, also keep in mind they can move without notice.
SPX (S&P 500) closed +7.70 at 1445.94. Support: 1439.,1432.77, 1423.41, 1419.45, 1416.96. Resistance: 1445, 1451.70, 1471.04. Daily chart below
