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The S&P looks to start the trading session today into new highs for the year and at the highest level since September 2008. Similarly the Nasdaq looks to start the session at the highest level since August of 2008. For many traders and investors the equity market appears to be climbing without a definitive means of fundamental support. However, with the Treasury market seemingly poised to “discount” a weak retail sales reading for February this morning and doing so because of the impact of adverse weather, it certainly seems like more than one market is embracing a bullish economic spin. In fact, a new low for the move in the Dollar index this morning suggests that flight to quality concerns off sovereign debt issues are mostly a non factor today and that seems to leave the fear of Chinese over heating, as the most compelling development of the week. In short, the negatives are being pushed aside and the bulls seem to have the edge. However, in order to spark something more than grinding gains today, might require something slightly better than expected from either retail sales or US sentiment readings later this morning.
S&P 500: The S&P has also managed a fresh new high for the move overnight and the index would seem to be poised to test the even number 1150 level. Some players are suggesting that the prospect of having a noted policy dove appointed to the Vice chair of the US Federal Reserve is cause for optimism, while others think that the numbers are poised to improve dramatically, after a series of weather impacted February numbers are digested. At least for the early action today, the stock market doesn’t seem to be ready to focus on next week’s Fed meeting. Critical close-in support in the June S&P is now seen at 1146.50.
DOW: The June Mini Dow is the odd man out in the early Friday trade, as it has failed to reach new highs for the year. In fact, the Mini Dow hasn’t even managed to return to this week’s highs and that might be a function of lingering concern off the all out push for US health care reform. The June Mini Dow would seem to have up trend channel support today at 10,396, but closer-in consolidation support is seen at 10,542. Initial resistance would seem to be situated at the Monday high of 10,600, but it would seem like the Dow will have to be dragged higher by the rest of the market.
NASDAQ: The June Nasdaq has clearly managed a distinct new high for the move in the early action today and as was suggested already, it also managed to reach the highest level since August of 2008. With the market managing to run up without the benefit of positive scheduled economic data flow it is possible that a portion of the trade is bidding up prices because a slack recovery might allow the Fed to leave easy money policies in place for the anticipated 6 month window. Close-in support in the June Nasdaq is seen at 1920.25 and then again down at 1916.25.
TODAY’S MARKET IDEAS: The bulls remain in control, especially since the trade is already floating talk that weather artificially served to weaken this morning’s retail sales reading.
Stock Market Commentary – 2010.03.12
by Dave Hightower on March 12, 2010
Below is a sample of our Daily Commentary. To get this comment, and our daily coverage of 15 additional markets and trade ideas, visit futures-research.com for your free 2 week trial!
The S&P looks to start the trading session today into new highs for the year and at the highest level since September 2008. Similarly the Nasdaq looks to start the session at the highest level since August of 2008. For many traders and investors the equity market appears to be climbing without a definitive means of fundamental support. However, with the Treasury market seemingly poised to “discount” a weak retail sales reading for February this morning and doing so because of the impact of adverse weather, it certainly seems like more than one market is embracing a bullish economic spin. In fact, a new low for the move in the Dollar index this morning suggests that flight to quality concerns off sovereign debt issues are mostly a non factor today and that seems to leave the fear of Chinese over heating, as the most compelling development of the week. In short, the negatives are being pushed aside and the bulls seem to have the edge. However, in order to spark something more than grinding gains today, might require something slightly better than expected from either retail sales or US sentiment readings later this morning.
S&P 500: The S&P has also managed a fresh new high for the move overnight and the index would seem to be poised to test the even number 1150 level. Some players are suggesting that the prospect of having a noted policy dove appointed to the Vice chair of the US Federal Reserve is cause for optimism, while others think that the numbers are poised to improve dramatically, after a series of weather impacted February numbers are digested. At least for the early action today, the stock market doesn’t seem to be ready to focus on next week’s Fed meeting. Critical close-in support in the June S&P is now seen at 1146.50.
DOW: The June Mini Dow is the odd man out in the early Friday trade, as it has failed to reach new highs for the year. In fact, the Mini Dow hasn’t even managed to return to this week’s highs and that might be a function of lingering concern off the all out push for US health care reform. The June Mini Dow would seem to have up trend channel support today at 10,396, but closer-in consolidation support is seen at 10,542. Initial resistance would seem to be situated at the Monday high of 10,600, but it would seem like the Dow will have to be dragged higher by the rest of the market.
NASDAQ: The June Nasdaq has clearly managed a distinct new high for the move in the early action today and as was suggested already, it also managed to reach the highest level since August of 2008. With the market managing to run up without the benefit of positive scheduled economic data flow it is possible that a portion of the trade is bidding up prices because a slack recovery might allow the Fed to leave easy money policies in place for the anticipated 6 month window. Close-in support in the June Nasdaq is seen at 1920.25 and then again down at 1916.25.
TODAY’S MARKET IDEAS: The bulls remain in control, especially since the trade is already floating talk that weather artificially served to weaken this morning’s retail sales reading.
Tags: DOW, Financials, NASDAQ, S&P 500, Stocks
About Dave Hightower