Thats a tough outfit to make...wtg on the service, we need more like him!
After two weeks of generally negative trade the stock market indices posted modest gains through the first hour on Monday. Sideways consolidation on both sides of the early highs persisted late into the day before minor new highs were established in the final minutes. Stronger income and close to in-line spending data, the best ISM Index reading since 2004 (58.4 vs. consensus of 55.2), Dollar weakness (underpins Energy/Commodity) and an upgrade/positive data point in Semi (SIA Dec growth better than expected) underpinned. Technically the S&P and Nasdaq had held near their Nov gap supports on Friday amid a short term oversold posture. Sector leadership on a percentage basis came from Commodity/Energy (Mining +5.8%, Coal +5.6%, Steel +5.4%, Materials XLB +4%, Oil Service OIH +3.8%, Gold Minters +5.4%, Ag/Chem MOO +2.2%, XLE +3.3%, Natural Gas UNG +5.2%), Semi SMH +2.2%, Finance (XLF +1.7%, Broker IAI +1.7%, Reg Bank RKH +1.3%), Casino +5.3%, Paper +5.2%, Disk Drive +3.7%, Airline +3.3%, Computer-Hardware +3.1%, Auto Parts +2.6%, Restaurant +2.5%. Weaker groups include: Internet HHH -1.5% (AMZN -5.2%), Biotech BBH -0.2%. Although the indices put together their best session in two weeks the lackluster pattern after the first hour and limited volume (NYSE below average) reflected muted interest thus far. Short term the S&P needs to maintain a posture above 1083/1081 in order to keep it in position for short term follow through. Initial resistance above the high (1089) is at 1092/1093 in front of the more important 1099/1100 zone.fwiw
Not sure where we go from here.
hope we stay in a trading range.
gl |
