Market Commentary for Friday, March 23, 2007
Thursday left a narrow range digestive day. A friend of mine said he felt luke warm today. I think that is an adequate description for the action we saw today. Volume fell off today, which is very normal after FOMC meetings and for digestive days. Crude rallied $2.08 on the day to close at $61.69. Gold had a nice up day as well with gains of $4.20 at $664.20.
We are still short term overbought, so we can still expect choppy action to work this off. The bulls were very serious about holding the swing lows from Wednesday and digesting this action. The volume may fall off even further as we digest this into Friday afternoon. Next week we have a fair amount of market moving economic data as well as month end. Which could leave folks in a “no rush†mentality for Friday. Holding the weeks gains and range could be the priority on Friday.
The Dow is still sitting just under the 50dma (50 day moving average) with the other broader markets still sitting just over the 50dma. Watch for an early pullback and similar action to what we saw today, until this range breaks we are stuck here. Keep watch on the financials, they were significantly stronger than the semi’s today.
Economic Data for the Week of March19 – 23 Friday 09:15 Phil Fed Bank Pres. Plosser speaks, 10:00 Existing Home Sales, 11:30 NY Fed Bank Pres Geithner speaks.
Some of the earnings for the week of March 19: Friday nothing of interest.
Compx (Nasdaq composite) closed –4.18 at 2451.74. Support: 2444.45 50dma, 2434.61, 2413.10, 2393.30, 2381.55, 2372.13. Resistance: 2455.08, 2472.86, 2488.65, 2504.92. Daily chart below
I hope everyone has a great weekend.
