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All things considered, the US equity market has held up extremely well this week. In fact, for the September S&P to be sitting within striking distance of this week’s highs, in the wake of some very disappointing US data is very surprising. With Housing Starts and permits down aggressively and claims showing a rise yesterday, one gets the sense that the early May market debacle did serve to trip up the economy somewhat. On a positive note, the stock market looks set to get through a full week without seeing a patently fresh concerning Euro zone debt problem and that in turn has probably served to provide a measure of short covering buying throughout this week. While we don’t see the resolve to send stock prices sharply higher today, we aren’t sure that the market will see a catalyst to send stock prices into a corrective mode. On the other hand, the markets appear to be sitting just above a series of lows forged early in the week and a trade back below those levels this morning, could give the bear camp a slight technical edge.
S&P 500: The S&P enters the last trading session of the week within close proximity to the recent highs and seemingly in a bullish posture. However, a series of closes earlier this week, just below the current market at 1084.20 in the September S&P contract might be considered a critical inflection point for the trade. In other words, we see relatively tight trading ranges today, but the failure to hold above 1084.20 could prompt a small measure of stop loss selling and perhaps a track back toward the even number 1100.00 level.
DOW: The Mini Dow comes into the Friday trade sitting right on the prior close and just below the recent high. In the wake of mostly disappointing economic data this week we just don’t see the market clawing out another day of strong gains, but with somewhat positive economic readings out of the Euro zone seen overnight and no US scheduled data this morning, the bear camp might not have the resolve to take control away from the bull camp. We see critical close-in support in the September Mini Dow down at 10,352, with even closer support pegged at 10,373.
NASDAQ: The September Nasdaq comes into the action this morning sitting just below the recent highs and seemingly leaning toward the upside. The bull camp will point out that some of the gains earlier this week, came on increased volume and that would seem to give some additional credence to the bull case. Without scheduled data flow today from the US, it is possible that the market will generally waffle around both sides of unchanged.
TODAY’S MARKET IDEAS: A quiet session expected as the US report slate is empty and overnight international economic news was mixed to slightly upbeat. The biggest feature of today’s action might be the fact that the US equity market is partially overbought technically.
Stock Market Commentary – 2010.06.18
by Dave Hightower on June 18, 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!
All things considered, the US equity market has held up extremely well this week. In fact, for the September S&P to be sitting within striking distance of this week’s highs, in the wake of some very disappointing US data is very surprising. With Housing Starts and permits down aggressively and claims showing a rise yesterday, one gets the sense that the early May market debacle did serve to trip up the economy somewhat. On a positive note, the stock market looks set to get through a full week without seeing a patently fresh concerning Euro zone debt problem and that in turn has probably served to provide a measure of short covering buying throughout this week. While we don’t see the resolve to send stock prices sharply higher today, we aren’t sure that the market will see a catalyst to send stock prices into a corrective mode. On the other hand, the markets appear to be sitting just above a series of lows forged early in the week and a trade back below those levels this morning, could give the bear camp a slight technical edge.
S&P 500: The S&P enters the last trading session of the week within close proximity to the recent highs and seemingly in a bullish posture. However, a series of closes earlier this week, just below the current market at 1084.20 in the September S&P contract might be considered a critical inflection point for the trade. In other words, we see relatively tight trading ranges today, but the failure to hold above 1084.20 could prompt a small measure of stop loss selling and perhaps a track back toward the even number 1100.00 level.
DOW: The Mini Dow comes into the Friday trade sitting right on the prior close and just below the recent high. In the wake of mostly disappointing economic data this week we just don’t see the market clawing out another day of strong gains, but with somewhat positive economic readings out of the Euro zone seen overnight and no US scheduled data this morning, the bear camp might not have the resolve to take control away from the bull camp. We see critical close-in support in the September Mini Dow down at 10,352, with even closer support pegged at 10,373.
NASDAQ: The September Nasdaq comes into the action this morning sitting just below the recent highs and seemingly leaning toward the upside. The bull camp will point out that some of the gains earlier this week, came on increased volume and that would seem to give some additional credence to the bull case. Without scheduled data flow today from the US, it is possible that the market will generally waffle around both sides of unchanged.
TODAY’S MARKET IDEAS: A quiet session expected as the US report slate is empty and overnight international economic news was mixed to slightly upbeat. The biggest feature of today’s action might be the fact that the US equity market is partially overbought technically.
Tags: DOW, Financials, NASDAQ, S&P500, Stocks
About Dave Hightower