Market commentary for Tuesday, March 27, 2007
Monday brought the early pullback and drop on the markets from the frightful housing data, the afternoon brought around full correct. The Nasdaq along with the S&P 500 closed green and held the 50dma. The Dow and the Russell 2000 ended the day slightly red with the Dow just under the 50dma. Volume increased slightly today to leave us fairly quiet with the down then right back up to leave us fairly unchanged.
Crude found the tension in the Middle East a little uneasy and brought a rally in Oil. Up 63 cents on the day to close at $62.91. The UN is looking at possible sanctions on Iran for the uranium enrichment as well as the 15 British personnel they captured on Friday. Gold rallied up $6.60 to close at $663.90.
The market was very quick to sell off on bad housing data and slow to come off the lows, with lighter volume than we tumbled on. This is still giving me reason to be suspect of higher ground. Also converging with this suspicion is we still have divergence with oscillators to price. This is really not good for the market. However, given the round trip kind of action we saw today, anything can come, but the downside is lurking out there.
End of month, Chairman Bernanke and bigger economic data is still due this week. Things are very unlikely to calm down and give the market a clear direction. So seat belt in for some bumpy rides this week. Keep a close watch on the S&P 500 as it approaches 78.6% resistance (1440.70). Big caps need to show participation for the markets to continue the upside. Tech is also at a critical and in need of a boost on the semi’s. The software and hardware sectors are holding steady, but the semi’s are in need of a run through last weeks highs.
Early action could be slow ahead of Consumer confidence, which can spark a move. The sentiment off bad data is it will prompt the Fed to ease rates, but don’t let that drive our decisions on each trade. We’ll need to see the bulls to buy into this. Early I think we see some pullback and then a test of the days highs and into the congestion we left up top last week and Monday.
Week of March 26-30 Tuesday 10:00 Consumer Confidence, Wednesday 08:30 Durable Orders, 9:30 Fed Chairman Bernanke speaks, 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, 12:30 Chairman Bernanke speaks.
Some earnings for the Week: 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.
SPX (S&P 500) closed +1.39 at 1437.50. Support: 1428, 1425.51 50dma, 1421.97, 1417.68, 1410.70 . Resistance:1440.70 (78.6%), 1446.07, 1452.99, 1461.57. Daily chart below
A reminder to readers, on my site there is a full listing of the major indexes and futures charts each night. For this site I only select one or two for the evenings view.
Discuss this post in the StockTradingToGo Forum.
Subscribe To StockTradingToGo.com
包茎…
包茎…