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!
With fresh higher highs for the move and favorable international market action giving the bull camp an added resolve, we have to leave the edge with the bull camp. We suspect that part of the gains in the prior session were the result of seemingly favorable events in the US Gulf of Mexico. However, BP continues to suggest that the final result of the top kill effort won’t be known during the trade today and that could suggest that the market is already pricing in plugging of the leak. With the markets also seemingly downplaying the Euro zone debt contagion issue for most of this week, we would suggest that the bulls are likely to face moderate adversity early next week, if any part of their case falls apart over the long weekend. With the US scheduled to see some favorable Personal Spending and Income numbers this morning, that should leave the bulls with the edge. However, if there is a bump in the road for equities today, it might come in the wake of the consumer sentiment readings, as those readings might be impacted by the early May financial market debacle. We also think that Obama will continue to blast BP again today and in the pattern of this White House, they will probably attempt to use another disaster to push for aggressive reform and increased regulation and that could dent the optimistic tilt in place in the early going today. We also have to think that a number of longs with profits in their positions might be inclined to bank profits ahead of the long weekend, especially given the ongoing concern of problems from the Euro zone.
S&P 500: The June S&P extended its recent pattern of strength early today and we suspect that the scheduled US numbers and window dressing ahead of month end could carry the market even higher. Initial resistance is seen at 1107.00 in the June S&P, with somewhat critical support in the market this morning seen at 1096.60. Minimally favorable numbers might favor the bull camp but we fear temporary corrective action in the wake of the Michigan sentiment numbers and in the wake of any Presidential press conferences from the Gulf later in the day.
DOW: While the June Mini Dow has managed a fresh new high for the move in the early action today, the extension wasn’t significant. Therefore we can’t argue against more upside today, but we think that the bull case has become somewhat over extended. At least in the early hours today, we suspect that more window dressing buying is possible, especially if the June Mini Dow is able to consistently trade above the 10,250 level. Critical support in the June Mini Dow is seen at 10,196 and then again down at an old quasi double top of 10,182. As suggested already, we think that the market will be positive out of the gate, but scheduled data later in the morning and a long weekend ahead might prompt some longs to bank profits just prior to the close today.
NASDAQ: The June Nasdaq has barely managed a fresh new high for the move in the early action today but that probably won’t prevent the market from an upside extension in the wake of the early US numbers. Initial support in the June Nasdaq is seen at 1855.00 this morning with little in the way of resistance seen until the 1874.25 level. News that Apple passed Microsoft to become the largest tech sector company would seem to bring some positive buzz back to the market. In the end, we expect early gains to be followed by a setback from the highs just ahead of the close.
TODAY’S MARKET IDEAS: After a distinctly bullish early tilt we suspect that upside momentum could wane as the session progresses as those long this market might be enticed to bank profits rather than risk negative developments from the Euro zone over the long holiday weekend. In other words, the US market is closed on Monday and that could leave the market exposed to the opening next week.
Stock Market Commentary – 2010.05.28
by Dave Hightower on May 28, 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!
With fresh higher highs for the move and favorable international market action giving the bull camp an added resolve, we have to leave the edge with the bull camp. We suspect that part of the gains in the prior session were the result of seemingly favorable events in the US Gulf of Mexico. However, BP continues to suggest that the final result of the top kill effort won’t be known during the trade today and that could suggest that the market is already pricing in plugging of the leak. With the markets also seemingly downplaying the Euro zone debt contagion issue for most of this week, we would suggest that the bulls are likely to face moderate adversity early next week, if any part of their case falls apart over the long weekend. With the US scheduled to see some favorable Personal Spending and Income numbers this morning, that should leave the bulls with the edge. However, if there is a bump in the road for equities today, it might come in the wake of the consumer sentiment readings, as those readings might be impacted by the early May financial market debacle. We also think that Obama will continue to blast BP again today and in the pattern of this White House, they will probably attempt to use another disaster to push for aggressive reform and increased regulation and that could dent the optimistic tilt in place in the early going today. We also have to think that a number of longs with profits in their positions might be inclined to bank profits ahead of the long weekend, especially given the ongoing concern of problems from the Euro zone.
S&P 500: The June S&P extended its recent pattern of strength early today and we suspect that the scheduled US numbers and window dressing ahead of month end could carry the market even higher. Initial resistance is seen at 1107.00 in the June S&P, with somewhat critical support in the market this morning seen at 1096.60. Minimally favorable numbers might favor the bull camp but we fear temporary corrective action in the wake of the Michigan sentiment numbers and in the wake of any Presidential press conferences from the Gulf later in the day.
DOW: While the June Mini Dow has managed a fresh new high for the move in the early action today, the extension wasn’t significant. Therefore we can’t argue against more upside today, but we think that the bull case has become somewhat over extended. At least in the early hours today, we suspect that more window dressing buying is possible, especially if the June Mini Dow is able to consistently trade above the 10,250 level. Critical support in the June Mini Dow is seen at 10,196 and then again down at an old quasi double top of 10,182. As suggested already, we think that the market will be positive out of the gate, but scheduled data later in the morning and a long weekend ahead might prompt some longs to bank profits just prior to the close today.
NASDAQ: The June Nasdaq has barely managed a fresh new high for the move in the early action today but that probably won’t prevent the market from an upside extension in the wake of the early US numbers. Initial support in the June Nasdaq is seen at 1855.00 this morning with little in the way of resistance seen until the 1874.25 level. News that Apple passed Microsoft to become the largest tech sector company would seem to bring some positive buzz back to the market. In the end, we expect early gains to be followed by a setback from the highs just ahead of the close.
TODAY’S MARKET IDEAS: After a distinctly bullish early tilt we suspect that upside momentum could wane as the session progresses as those long this market might be enticed to bank profits rather than risk negative developments from the Euro zone over the long holiday weekend. In other words, the US market is closed on Monday and that could leave the market exposed to the opening next week.
Tags: DOW, Financials, NASDAQ, S&P 500, Stocks
About Dave Hightower