Let’s start by taking an excerpt from my condensed earnings calendar. There is a PPI report at 8:30 ET and a Capacity Utilization/Industrial Production report at 9:15 ET. Any economic report that can move the Dollar is important in this market and both of those fit into that category.
When mainstream media has it focus on the Dollar, you have to wonder how much longer the relationship can hold up (courtesy of Marketwatch.com).
The overnight range is about 1100-1108. Yesterday was a trend day although we did get the intraday weakness after Bernanke’s comments and the selloff into the close.
Retail earnings from HD, SKS, TGT and TJX today.
I also wanted to take a minute to look at the bigger picture. The next point of horizontal resistance on SPY is at about $118. However, if the bearish wedge theory is still in play, we’ll have to see if the under side of the trendline holds at $112-113.
For the rally to continue, the divergence between small caps (IWM) and the larger cap stocks needs to be reconciled to the upside. IWM closed just above its 50-day SMA but it needs to make a new high over $62.5 and stay above that 50-day SMA.
The next price target on the QQQQs is $48.50. The QQQQs have been very respectful of Fibonacci retracements the entire year.
Next stop for DIA is in the $107-108 area.
UPDATE: Also of interest is that natural gas is up this morning a little over 1%. While natural gas has performed quite badly the entire year, the nice thing about it is that it isn’t correlated with the market. It does its own thing which is tough to find in this market.
-
crazygirl
-
chartsandcoffee
-
crazygirl
-
OspreyFlyer
-
chartsandcoffee
-
OspreyFlyer
