It's a tough call here. SPX bounces off the 200 dma and most indices manage a close above their respective 10 day moving averages. But NQ/QQQQ lose 20 dma support and while the ten year note drops below 5%, gold makes a comeback with a move above 643 resistance. Inflation concerns, or riding the higher oil? Obviously, the bond market is not as concerned as the metals are. Oil inventories due tomorrow and we will take it from there. NQ (NDX e-mini futures)has confluence daily and weekly S1 at 1479 and that could prove to be an overnight lure. Keep a close eye on SMH (semis) and 30.50 support. COMP at 2058 is also a must hold.
The real data comes on Friday with the jobs report. I did not expect the markets to fall this hard before this key piece of information, but keep in mind that today's volume was light, with QQQQ at 78% normal. Summer trading often sees exaggerated moves and we will see if this one bites more than it barks.
The real data comes on Friday with the jobs report. I did not expect the markets to fall this hard before this key piece of information, but keep in mind that today's volume was light, with QQQQ at 78% normal. Summer trading often sees exaggerated moves and we will see if this one bites more than it barks.
This entry was posted
on Tuesday, August 01, 2006 at 6:56 PM.
