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Intraday Market Notes -- July 25

|Includes:Caterpillar Inc. (CAT)

2:10 pm ET: You might have thought that Apple (NASDAQ:AAPL) missing earnings after yesterday's close would have tanked the market today but perhaps the fact that Caterpillar (NYSE:CAT) blew out their numbers and raised guidance gave investors hope that the global slowdown may not be as bad as feared. That could be...but it could also be that governments and industries are replacing aging infrastructure. Let's put it this way, if your twenty year old clunker is becoming nothing more than a money pit of repairs, wouldn't you finally replace it, too? I'm just not sure how to properly interpret this situation...

One thing's for sure though, the Caterpillar news hasn't positively affected the Dow Transports (DTX). While the other major indices are trading in the green, the DTX is in the red. This should not come as good news to the bulls as the DTX is generally considered a leader in market direction. While market internals are showing the bulls to be in control at the moment, the bears are circling and they look hungry. I would not be surprised to see them regain control going into the close.

1:30 pm ET: Intraday support/resistance:
SPX 1328/1344
DTX 489.5/496
DJIA 12595/12725
Nasdaq 2839/2869
OEX 611.75/618.25
VIX 19.3/20.9
Trin range: 1.0 - 1.5
Average VWAPs: +69/-39 (bulls are edging higher)

Stocks: CAT