Daily Commentary for Friday, February 23, 2007
Thursday again gave us a mixed outcome on the day. Nasdaq 100 and Nasdaq Composite both green and on slightly heavier volume leaving an accumulation day. The S&P 500 and Dow both closed red and on heavier volume, leaving a distribution day. Which makes two consecutive distribution days for the S&P 500 and Dow.
Crude closed up on the day closing at $60.95 with 88 cent gains. Earlier in the day after inventory data we actually saw a pop up to $61.25. Gold after yesterdays big rally took a day to digest closing down $1.00 at $683.00.
Tech helped push the market up off the early weakness we saw into lunch. Several semi’s were on the war path for the upside after upgrades came in. SOX actually was the strongest sector (on my list) for the day followed by internets and oil. So was really a decent move with good support on that side of the market. Banks and brokers however did not put in the stellar performance, banks were one of the weakest and red. Which pulled the S&P down.
Thursday delivered a nice day, but now the Nasdaq and Sox which was our leader today, are a bit top heavy in overbought territory. So with the S&P 500 along with the Dow already in pullback mode, Friday may bring us some digestion and slight pullback. I don’t think the Nasdaq is just going to say OK drop and get in gear. I think we are just due to see it and after today’s SOX, we have the tech strength we’ve needed to support the market. Which could keep giving us small pullbacks for buying opportunities. But we do need to work off some of this overbought situation now, so that means small pullback or sideways. Be prepared for a QUIET day after the first hour or so.
Economic Data for the week of February 19 –23 Friday nothing due.
Some earnings due out for the week: Friday pre market CCU, CTV, LOW, MCCC, GAS.
ES (S&P 500 e-mini) Friday’s pivot is 1459, the weekly is 1452.00. ES put in heavier volume than yesterday which left a distribution day again, actually today’s volume was the highest we’ve seen on the ES since 2/9. 1464 held as resistance today. Our range to watch for a break is now 1462.25 and then up to 1464 for upside. Down we need 1454.25 to 1452.75. Intra day support: 1458.25, 1456.75, 1454.25, 1452.75, 1451.50, 1449.75, 1448.25, 1445.25. Resistance to look for: 1460.25, 1462.25, 1464, 1465.25, 1467.75, 1470.75. 60 minute chart is below.
