Morning Update: 12/18/2012

Indices Close Strong

The stock market indices started the week off with a bang. They ran up sharply from the get-go, and within minutes they hit their overhead resistance and backed off. The Nasdaq 100 came back much sharper because Apple Inc. (AAPL) was down on the session early on and then reversed. That helped the indices in a beautiful, 5-wave rally intraday, closing at the highs for the day going away on a big spike in the afternoon, particularly in the last half hour when they exploded.

Net on the day, the Dow was up 102.83 at 13,237.38. The S&P 500 was up 16.92 at 1439.50. The Nasdaq 100 was up 36.17 at 2654.26.

Advance-declines were 2 to 1 positive on theNew York Stock Exchange, and 2 1/2 to 1 positive on Nasdaq. Up/down volume was 5 to 1 positive on New York, with total volume of 625 million shares. Nasdaq traded over 1.85 billion, which is big volume, and had a 2 to 1 positive volume ratio.

Stepping back and reviewing the hourly chart patterns, the indices were up sharply at the get-go, pulled back sharply but held. They ran very hard midday, only to pull back quite sharply in the afternoon, held support, and then exploded into the close as short covering took over. Although the indices closed near 1431 S&P 500 and 2664-5 zone NDX, both of which are resistance levels, it sure looks positive for more upside going forward as the S&P 500 held its major trend line over the last few weeks.

We’ll see how it goes on tomorrow.

Good Trading!

 

Leaders

 

InternalsInstitutionalAverages

Morning Update: 12/5/2012

Indices Close Lower but Substantially Off Lows

The stock market indices ended down on the day, substantially off the morning lows. They were actually in the plus column with an hour to go, but failed and faded in the last hour.

Net on the day, the Dow was down 13.90 at 12,951.71, 13 points off the low and 70 points off the high. The S&P 500 was down 2.42 at 1407.04, 4 points off the low and about 6 off high. The Nasdaq 100 was down 3.95 at 2667.89, 15 points off the low and 7 off the high.

Advance-declines were slightly negative by 100 issues on theNew York Stock Exchange, and 125 issues on Nasdaq. Up/down volume was slightly negative on New York, and slightly negative on Nasdaq as well.

Stepping back and reviewing the hourly chart patterns, the indices were down sharply by late morning. They rallied back and pulled back to retest, and made lower lows on the S&P 500 but not on the NDX. That contributed to an afternoon 3-wave rally that failed, and they rolled over into the close.

It was not too bad of a day, and many of our stocks were up today. Let’s see what happens tomorrow.

 

Leaders

Averages

Institutional

Wednesday, December 5

Economics
07:00 MBA Mortgage Purchase Index
08:15 ADP Employment Change – consensus 130K, prior 158K
08:30 Nonfarm Productivity – consensus 2.7%, prior 1.9%
08:30 Unit Labor Costs – consensus -0.9%, prior -0.1%
10:00 Factory Orders – consensus 0.0%, prior 4.8%
10:00 ISM Non-Manufacturing Composite – consensus 53.5, prior 54.2
11:00 Fed to purchase $4.25b-$5.25b Treasuries in 6 to 8-year notes
00:30 AUD GDP
01:45 CNY HSBC Services PMI
08:45 EUR Eurozone PMI Services
09:30 GBP PMI Services
10:00 EUR Eurozone Retail Sales
20:00 NZD Reserve Bank of New Zealand Rate Decision
9:30 Spain to sell debt
11:30 Germany to sell EU4b 2-year notes

Earnings
After:
Finisar (FNSR)

There were no significant economic releases on Tuesday. On Wednesday we will get the ADP employment report, Factory orders, the ISM non manufacturing number and oil inventories.

12/4/2012-Morning Update

Indices Roll Over After Big Up-Gaps

The stock market indices started off the week on a negative note, although they started off the session with big gaps to the upside, especially on Nasdaq 100. The NDX actually went to new rally highs to just under 2700 at 2695.04. That resistance proved formidable as they rolled over the rest of the session in a down channel, closing near the session lows.

Net on the day, the Dow was down 59.98 at 12,965.60, 122 points off the high. The S&P 500 was down 6.72 at 1409.46, a point off the low. The Nasdaq 100 was down 6.04 at 2671.84.

So all of these reversed and closed near the session lows going away.

Advance-declines were 3 to 2 negative on the New York Stock Exchange, and 13 to 11 negative on Nasdaq. Up/down volume was 2 to 1 negative on New York, with total volume of 638 million shares. Nasdaq traded over 1.6-7 billion and had a little less that 2 to 1 negative volume ratio.