Morning Update: 8/10/2012

The stock market indices had an interesting, mixed day today. This is the third day in a row that the market has held its own, while the market consolidated. Many stocks that we follow are continuing to press higher. That’s a good sign for further upside. A bad sign for the bears, for sure.  The day started out with a pop to the upside, they tested resistance, and then rolled over hard. After slightly violating support, it came back with a thrust, bringing the Nasdaq 100 from 2708 to 2725. The S&P 500 jumped from 1399 to 1405. They backed off in the last hour, and backed and filled for the rest of the session.

Net on the day, the Dow was down .45 at 13,164.19, about 35 points off its high and 40 points off the low. The S&P 500 was up 58 cents at 1402.80, only 3 points off its high and 4 points off the low. The Nasdaq 100 was up 5.59 at 2719.61, 5 points off the high and 11 points off the low.

Advance-declines were 16 to 13 positive on New York Stock Exchange, and 13 1/2 to 11 positive on Nasdaq. Up/down volume was 3 to 2 positive on New York, with total volume of a very light 560 million shares. Nasdaq traded over 1.6 billion, and had a 3 to 2 positive volume ratio.

Stepping back and reviewing the hourly chart patterns, the indices were up early to test resistance, and then rolled over hard to test support, but bounced midday, and consolidated at the end of the day to close mixed on the session.


Friday, August 10

08:30 Import Price Index MoM – consensus 0.2%, prior -2.7%
08:30 Import Price Index YoY – consensus -2.7%, prior -2.6%
02:00 Monthly Budget Statement – consensus -$103.0B
11:00 Fed to sell $7b-$8b notes in 1-2 year range
04:30 JPY Industrial Production
06:00 EUR German CPI
08:30 GBP PPI
12:30 CAD Unemployment Rate
11:10 UK to sell bills

JC Penney (JCP) EPS -23c

The trade deficit was $42.9 billion. This was less than the projected $47.5 billion. Initial claims were 361,000, less than the expected 367,000. There are no significant economic releases on Friday.

We’ll see how it goes tomorrow.


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