Thursday brought in a little heavier volume and a red day across the broader markets to leave a distribution day for the NYSE and Nasdaq. S&P 500 hit another high off the open, but closed on the lows. Apple started the day off letting us know they wouldn’t intro the iphone until late first quarter or early second quarter. It was originally expected in January, so they are pulling a Microsoft with delays, not a good sign.
Crude closed higher by 30 cents at $62.49 as the December 14th OPEC meeting nears and talks of cuts in production continue. Gold also up on the day to close at $637 +1.10. After two down days a little rebound was needed.
Friday’s tone will be set by the jobs data in the pre market. Thursday’s sell off was a nice pullback, but it was on higher volume so did leave a distribution day. We don’t want to see a lot of distributions days, light volume pullbacks are best for the bulls trend. As the week comes to an end we need to be watchful for a quiet afternoon. The morning will likely be filled with volatility but it may quiet down. We do have FOMC and quadruple witching next week which could bring in some late day positioning, but not necessarily a wide range. So don’t feel like you have to trade all day if things start to quiet down. I have no bias going into the data, after today’s sell off the market is obviously showing some jitters.
Economic Data for the Week of December 4-8: Friday 08:30 Nonfarm Payrolls, 08:30 Unemployment Rate, 08:30 Hourly Earnings, 08:30 Average Workweek, 10:00 Mich Sentiment Prel.
Some earnings for the week of December 4-8: Friday pre market BKRS.
ES (S&P 500 e-mini) Friday’s pivot is 1424.25 for the March
2007 contract. Intra day Support: 1419.50, 1418.25, 1416.50, 1411.75 and 1409.
Resistance: 1424.50, 1425.75, 1427.50, 1429.5 and 1432. 60 minute chart is
below.
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