Morning Update: 7/11/2012

The stock market indices had a lousy day today, but they did have a late snapback to pare back the losses.

The day started out with a big up move today. As well, that tagged right on resistance at 2630 Nasdaq 100 and 1362 S&P 500, but it failed right there quickly and sold off sharply in the morning. By midday, it stabilized to form little bear wedges. They rolled over early afternoon, and sold off sharply into the last 15 minutes before they snapped back.

Net of the day, the Dow was down 83.17 at 12,653.12, about 47 points off its low, the S&P 500 was down 10.99 at 1341.47, about 5 points off its low, and the Nasdaq 100 down 24.79 at 2585.52, 11 points off the low.

Advance-declines were nearly 2 to 1 negative on New York, and 2 to 1 negative on Nasdaq as well. Up/down volume was nearly 5 to 1 negative on New York, with total volume of 720 million shares. Nasdaq traded 1.66 billion, and had a 5 to 1 negative volume ratio.

Stepping back and reviewing the hourly chart patterns, the indices gapped up sharply at the opening, but then failed quickly, rolled over, and fail down into a 3-wave decline intraday in a definitive down channel only bouncing off the bottom of those channels to prevent them from closing at the lows for the day. They did bounce of key support on the hourly charts.

We’ll see what that means tomorrow.

Instrument Strategy Market pos. Quantity Entry price Exit price Profit
NQ 09-12 Custom Short 4 2583.5 2578.75 362
GC 08-12 Custom Short 2 1571.2 1566.9 851
CL 08-12 Long 1 84.81 84.84 25.5

Economics
07:30 NFIB Small Business Optimism, est. 93.5, prior 94.4
10:00 IBD/TIPP Economic Optimism, est. 46.5, prior 46.7
10:00 JOLTS Job Openings, prior 3416
2:00 CNY Trade Balance, est. $21.50 B, prior $18.7 B
5:00 JPY Consumer Confidence, prior 40.7
8:30 GBP Industrial Production, est. -2.2%, prior -1.0%
14:00 GBP NIESR Gross Domestic Product Estimate, prior 0.1%

Earnings
Before:
Shaw Group (SHAW) EPS 58, revs $1.49 B

After:
No major events. 

There were no important economic releases on Monday and there will be none on Tuesday.

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