Wednesday brought the sellers out to drop the market throughout the day. Chairman Bernanke did not have his bullish impact today! It was what he didn’t say that scared the market, he did not elude to cuts or increases. He is watching the growth and what he said to be slowing inflation. The tension out of Iran is also weighing on the market.
Oil closed higher at $1.15 at $64.08 on the day. Spikes in oil are coming off rumors and facts off Iran. This was WELL off the after hours action which saw $68.09 levels we have not seen for 6 months. Any further negative developments from Iran will shoot oil up to $70.00 in a heart beat. Gold rallied $4.30 at $666.80 on the day. Prime Minister Blair’s comments about regarding the 15 naval personnel taken entering a new phase, sparks the run to safety action to lift gold.
Going into Thursday if we did not have GDP and Initials claims to set the tone of the day I would be looking for downside. But with that data due at 8:30 and with Bernanke on tap for Friday the market will stay on pins and needles. If the inflation data doesn’t meet the consensus the market will be trying to interpret the impact. If the data is showing inflation is not contained then the market will be concerned about rate increases, if the data shows inflation is well contained then the market will once again get hopeful for a rate cut. Either way we’ll react. But as I said without the data I would be leaning for lower ground given Wednesday’s action.
Week of March 26-30 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: 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 –20.33 at 2417.10. Support: 2410.92, 2395.77, 2380.61, 2372.66 (fills the gap). Resistance: 2421.89 20dema, 2430.99, 2436.53, 2440.74 50dma. Daily chart below
Lets see what the early morning action brings us and how the market performs, but I definitely think we are in for a very nice day.
