The ES is creeping up into the open with the market taking a positive view of earnings by CSCO and QCOM. The overnight range (at 8:40 ET) is 1039-1051.
The dollar is starting the day lower which should help propel the market. Both SPY and QQQQ appear to be clinging to their 50 day SMA. With the jobs report tomorrow, I wouldn’t expect that to change today.
The QQQQs are trading at $41.80 in the pre-market. The 50 day SMA is at $41.76 and the 20 day is at $42.41. The 10 day ATR is $.74. The close was $41.33 so tacking on $.74 would put the QQQQs at $42.07 if positive CSCO and QCOM news holds (big if). That would put us just above the 50 day and just below the 20 day. I’m going through this little analysis just to point out that the CSCO and QCOM numbers do not likely change the technical picture and the indecision in the marketplace.
I’m not so sure tomorrow’s job number will resolve the indecision. I suspect an inline number combined with the positive earnings might be enough for a continued rally attempt. Especially with the dollar holding the 50 day SMA. The market fears a jobs number with a 10 in front of it.
