An optimistic lot, we traders are!
US Initial Jobless Claims rose 51,000 last week! Some states attributed the rise to snow. The US December Durable Goods Orders were down by 2.5 %. Moody’s Investor Services came out with a statement that the US Government action on the budget deficit may potentially create lower debt ratings, to the current top AAA credit rating. On the positive side of the market news that US December Pending Home Sales were up 2 %. The December ISM grew rather well last month. The Earnings Reports were quite positive with Microsoft Corp and Caterpillar leading. This is clearly a case of the glass being half full. Technically, this market is controlled by the bulls. Each day, we see it run higher (please look at our expectations from last evening). We are still under $1300.00, but have broken through key resistance. It is just a matter of time! It may not be quite that easy as traders may find $1300.00 makes them nervous. Some may look for a potential pause or retracement and simply want to stand aside until they clearly get a dip for which to buy again. The bears are waiting in the wings as disappointment over the rising market has potentially had them on the sidelines. We still find the intraday moves appealing. Tomorrow, we look forward to the Employment Cost Index and GDP at 7:30 AM CST.
What to expect tomorrow! The Employment Cost Index may be a bearish report, but this market is holding some strength. GDP is expected to be a positive report. It is likely that the bullish move may remain intact in the morning, but may see a retracement Friday afternoon. The high of the day today was $1298.25 and the low of the day was $1289.25 and tomorrow, we can see a lower low. $1277.00 is vital support to look for and the comfort level or point of control may be $1294.00.
Experience is the name everyone gives to their mistakes.
-- Oscar Wilde
Leslie Burton / CFRN Staff Writer