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Daily
Editorial: |
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NASDAQ Selling Stalls at 100 Day SMA Support
Good morning! The
market got off to a very slow start this week. As expressed in
yesterday's column, I was primarily bearish heading into the day. The
bears did in fact rule the session, but the majority of the day
consisted of the same choppy action that permeated last week's
activity. This was punctuated from time to time by several waves of
selling. The first decline came out of the 9:45 ET reversal period.
This began slowly picking up in the NASDAQ out of a 5 minute Avalanche
pattern out of the 10:15 ET reversal period.
Following this initial selloff, the market
fell into a longer trading range going into noon. The volume continued
to decline as the indices crept into the 15 minute 20 sma resistance.
As the 12:00 ET reversal period hit the market saw its second wave of
selling intraday. This was weaker than the first, serving as just one
wave within a larger trend channel that continued to form on the 15
minute charts going into the early afternoon.
After coming into the 15 minute resistance,
the indices began to sell off for the third time intraday around 13:30
ET. This was the strongest decline of the day and stalled as the 14:00
ET reversal period hit. A sharp spike in volume indicated exhaustion as
the S&P500 and Dow Jones Ind. Ave. came into prior lows on the 15
minute charts. Although the volume was not as significant on the 15
minute charts, the combination of reversal period, price support and
volume helped end the decline on the day. Also of significance was that
the NASDAQ had fallen into that 100 day moving average support that we
have been looking at over the past week as a magnet for larger support.
While the S&P500 and Dow both look like they could go either way on
Tuesday, the NASDAQ seems to be trying to round off at the 100 day sma
support with greater potential for an upside correction in the morning.
Many stocks are still fairly overbought at this point, however, so I
remain a great deal more cautious on longs, although intraday we have
room for a greater correction to the recent selling.
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Economic
Reports and
Events:
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Feb. 07:
Consumer Credit for Dec (3:00 pm)
Feb. 08:
Crude Inventories 02/03 (10:30 am)
Feb. 09:
Initial Claims 02/04 (8:30 am), Wholesale Inventories for Dec (10:00 am)
Feb. 10:
Trade Balance for Dec (8:30 am), Treasury Budget for Jan (2:00 pm)
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Earnings
Announcements of Interest: |
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Only stocks with an
average daily volume of 500K+ are
listed. List may not be complete so be sure to always check your
stock's earnings date before holding a position overnight. (A) =
Earnings after the close, (B) = Earnings before the open,
(?) = Earnings time not specified at the time of this writing
Feb. 07:
ARDI (A), AL (?), ALKS (?). AMX (A), APC (B), ATSN (7:00 AM ET), AXS
(A), BRL (B), BHE (B), BMC (A),
BSX (B), BP (02:00 am ET), CELL (A), CHRW (?), CNC (B), CSCO (?), CSC
(A), BGC (A), EMR (B), FSH
(A), FO (?), ICOS (?), IMMU (A), KB (B), LVLT (?), MHX (B), NAVR (A),
OXY (B), OIS (A), OSTK (B), PFGC (B), PSD (A), RGC (B), RL (08:00 am
ET), RNR (A), CAKE (A), KO (B),
PMI (?), TM (?), UPL (A), UARM (B), VRTX (A), VSH (B), WWY (?)
Feb 08:
AKAM (?), ALVR (B), AMKR (A), APPB (A), RMK (B), ARI (A), ARRS (A), AUO
(?), AVNX (A), ACLS (A), CI (?), DF (B), DO (?), EDMC (A), EDS (A),
ENER (A), ERES (A), FNF (A), FLIR (B), GGB (B), GSK (07:00 am ET), GRP
(B), IACI (B), MVK (A), MOGN (?), MPS (B), NFG (A), NWS (A), PEP (B),
PXD (B), PRU (A), QSFT (?), RAI (?), SBGI (B), SNWL (A), DTV (B), WFMI
(A), WSH (A), XTO (?)
Feb 09: AET
(B), AG (?), AW (A), AMLN (A), ADI (A), AOC (A), AIV (B), AIZ (B), ALV
(06:00 am ET), AN (B), BWA (?), BORL (?), BYD (A), BG (B), CPST (A),
CEM (A), CCE (B), CTSH (B), ELNK (07:00 am ET), HGSI (B), LGF (A), MAR
(B), MBI (B), MFE (?), MET (A), NFX (B), NFI (A), OSUR (A), PNRA (A),
SKYW (?), TELK (?), TRA (?), TQNT (A), TRZ (B), UNTD (A), UTSI (A)
Feb 10: AU
(?), ACI (B), CHB (B), CBB (B), CVH (?), ECL (B), IIJI (?), VC (B)
Note: All economic numbers
and earnings reports are in lines with those compiled by Yahoo Finance.
Occasionally changes will occur that are made after the posting of this
column.
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