Morning Update: 2/28/2012

The stock market indices suffered sharp losses at the opening, but quickly reversed and rallied sharply, even getting into the positive column. They then bounced around, consolidated for the rest of the day, and made new highs with about an hour to go at nearly 2620 on the NQ and nearly 1373 on the S&P 500. They pulled back sharply, bounced, and then rolled over into the close to put the Dow in the negative column.

Net on the day, the YM was down 1.44, giving back 46 points, closing under 13,000 at 12,981.51 after reaching 13,027.37. The ES was up 1.85 to 1367.59, 4 1/2 points off its high. The NQ was up 2.55, but closed more than 10 points off its high at 2606.76, with a high of nearly 2617.

Advance-declines were barely ahead on the New York Stock Exchange by only 11 issues, and Nasdaq had 227 stocks lower versus higher. Up/down volume was also barely ahead by a narrow margin on New York, with total volume just over 720 million share traded today. Nasdaq traded about 1.7 billion shares and had a 10 to 7 positive volume ratio.



USD Durable Goods Orders (MoM) -0.8% 3.0%
08:30  USD Core Durable Goods Orders (MoM) 0.0% 2.2%
09:00  USD S&P/CS Home Price Indices Composite – 20 (YoY) -3.6% -3.7%
10:00  USD Richmond Manufacturing Index 10 12
10:00  USD CB Consumer Confidence 63.0 61.1


No trades today.


Stepping back and reviewing the hourly chart patterns, big down gaps at the opening couldn’t thwart the market as within the next 15 minutes after some follow-through they then exploded to the upside. They consolidated the rest of the session only to pull back into the close to leave the indices fairly flat on the day.



Olof Thomas



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