Wednesday came to play with its Bear game today. High volume on the NYSE and Nasdaq leaving a distribution day. Expansion day to the downside ended with giving back all of last weeks gains across the broader markets. Economic data fueled some fears of economic slow down, but keep in mind we were due for a correction and we are seeing that. I wrote last night to sell into strength and Wednesdays gap up opening was the perfect opportunity for us.

Crude fell after inventory showed we are not in danger of seeing supply shortages. Closing down 2 cents at $58.71 on the day. Gold on the other end of the spectrum rallied to close up double digits on the day. UP $12.50 to close at $619.30. Holidays along with traditionally bullish time for gold is getting an extra boost off some political concerns with the election nearing.

Thursday we have retail same store sales due (about 60 retailers), along with other economic data. All of this will set the tone for the day. Wednesday’s data continued to support the slowing in housing, auto’s and showing some slowing in business confidence which limits investments in capital expenditures. This will trickle into jobs data of course, fewer employees are needed if big industries are slowing. But it also trickles into steel, lumber, other metals, glass and anything needed to build something basically. Business cap ex spending trickles into chips, computers, printers, copier etc… anything a business uses all the way down to the chairs employees sit in.

Thursday the pre market data is likely to set the tone for the day. But keep in mind Friday’s jobs numbers could keep the market quiet. Wednesday was obviously not a narrow range quiet day, so Thursday could be range bound. I will again look for strength to be sold. Our correction still has some room so look over the charts below for the major indexes for the next levels of support. Also with volume being as large as it was today, Thursday’s maybe lighter to sit and await the jobs data.

Economic data for the Week of Oct. 30^th– Nov 3rd^: Thursday 08:30 Initial Claims, 08:30 Productivity-Prel., 10:00 Factory Orders, Friday 08:30 Nonfarm Payrolls, 08:30 Unemployment Rate, 08:30 Hourly Earnings, 08:30 Average Workweek, 10:00 ISM Services.

Some earnings for the week of Oct 30^th – Nov 3^rd: Thursday pre market – AGU, ABC, BBI, CSK, DJO, ENCY, IP, MGM, OSG, THE, RIG, VPHM, and after the bell – APCC, BIO, CEPH, CSC, DLLR, ERTS, HLTH, ICOS, IPAS, JCOM, LF, PDLI, QCOM, SINA, WEBM, WFMI. Friday pre market – DUK, OMG, THQI and after the bell – LNG.

ES (S&P 500 e-mini) Tuesday we were lots of zig and zag, Wednesday fell from the opening to the close. Thursday’s pivot is 1376.75, weekly is still 1384.25. Intraday Support: 1370.50, 1369, 1364, 1361.75, 1359 (fills the gap). Resistance: 1374, 1377.50, 1379.50, 1383.50, 1387.

Compx (Nasdaq composite) closed -32.36 at 2334.35. Support: 2320.05, 2313.61, 2301.75, 2263 50dma. Resistance: 2349.18, 2368.86, 2379.10, 2413.52, 2427.85, 2437.74.

Good trading to everyone.

Teresa Appleton has traded equities and options for nine years and futures for seven. She founder and CEO of TradeLogic, LLC. For more information about Teresa and the training she offers stock, options and futures traders, click here.