Morning Update: 7/13/2012

The stock market indices had a down day today but they came way back. Early gap-downs and sharp sell-offs within the first hour got the Nasdaq 100 down to 2523 and the S&P 500 down to under 1326. They then pulled back midday, and then really spiked up just after the lunch hour, before backing off in the afternoon. Coming back up to test the highs late in the day, they made nominal new snapback highs near 1340 on the S&P 500, however, could not do so on the NDX. When that occurred, in the last 15 minutes, they sold off rather sharply but held support.  The day started out ugly for the stock market on Wednesday, but had a late snapback. The stocks that did well did really.  Net of the day, the Dow was down 31.26 at 12,573.27, about 80 points off its low, the S&P 500 was down 6.69 at 1334.76, 9 points off its low, and the Nasdaq 100 down 25.69 at 2545.30, 23 points off the low. Advance-declines were 3 to 2 negative on New York, and about 3 to 2 negative on Nasdaq as well. Up/down volume was almost 2 1/2 negative on New York, with total volume of 733 million shares. Nasdaq traded a little more than 1 2/3 billion, and had a 3 to 1 negative volume ratio.

Stepping back and reviewing the hourly chart patterns, the indices gapped lower, went down sharply in the morning, and within an hour were at the session lows. They then snapped back sharply and took back a vast majority of the losses to actually get into the plus column on the Dow and near flat on the S&P 500. They did sell-off in the last 15 minutes to put them in the loss column on the session. However, with today’s lows being near oversold conditions, and near trend line and support levels, I’m not surprised we rallied, but it wasn’t more than technicals.

We’ll have to see if there’s a follow-through.

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%

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

No major events. 

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



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