Market Commentary for Monday, March 26, 2007
Friday ended with split markets. The Nasdaq 100 and the Nasdaq Composite closed red, while the S&P 500 and Dow were green. Very narrow range congestion day, which was like Thursday’s action and left us bored but wound very tightly. Volume has fallen off and back below the 50 day average on the NYSE and Nasdaq.
Some divergence on the daily S&P 500 and Dow were left on Friday. Broker sector also left some, which tells us the market is not in sync and still short term overbought. The Nasdaq late day fell off and closed red, with the other broader markets as green on the day.
The week ahead we have bigger days on Thursday and Friday full of economic data and some lighter days ahead. With the divergence and wound up market we are set for a pullback and to look for continuation of the upside. The Dow did barely clear the 50 day moving average on Friday, we’ll need confirmation of this break with a higher close on Monday. We can also look for volume to improve some and progressively increase as we near Thursday and Friday. End of month along with economic data should insure we find the volatility late week.
Week of March 26-30 Monday 10:00 New Home Sales, Tuesday 10:00 Consumer Confidence, Wednesday 08:30 Durable Orders, 10:30 Crude Inventories, Thursday 08:30 Initial Claims, 08:30 GDP-Final, 08:30 Chain Deflator-Final, 10:00 Help Wanted Index, 10:30 Nat. Gas Inventories, 12:00 Fed Bank Pres Stern, Friday 08:30 Personal Income, 08:30 Personal Spending, 08:30 Fed Bank Pres Plosser, 09:45 Chicago PMI, 10:00 Construction Spending, 10:00 Michigan Sentiment Rev, 12:00 Chairman Bernanke speaks.
Some earnings for the Week: Monday pre market DG, TIF, WAG and after the bell PVH. Tuesday pre market LEN and after the bell CAN. Wednesday pre market APOL, GMTN, and after the bell PAYX, SONC. Thursday pre market AGE, AM, CHINA, FDO, SCS, TXI, WTSLA and after the bell FINL, SLR, TIBX. Friday pre market ARD.
Compx (Nasdaq composite) closed –2.81 at 2448.93. Support: 2444.24 50dma, 2434.61, 2413.10, 2393.30, 2381.55, 2372.13. Resistance: 2455.08, 2472.86, 2488.65, 2504.92. Daily chart below
The market should move and I know Thursday and Friday were very trying and dull. So let us come in sharp and ready to play on Monday.
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