MV Weather Report: S&P Flash Flood Warning
Rain or shine, we review the day's biggest stock stories.
For the day, the S&P 500 closed at 940, down 0.04%, practically unchanged from yesterday's closing prices. Why do we even show up to work on these summer Fridays?
I'll answer my own question, today could actually turn out to be a pivotal turning point for the S&P 500. Today on the Buzz and Banter Professor Jeff Cooper explained why.
"Is this weeks thrust reminiscent of the thrust of the March low?
"Could be a breakout. Could be an exhaustion in which case I would indicate a Spike & Reversal pattern and that the move up has been an option expiration runaway squeeze play rather than the normal wall of worry leg up.
"One of the reasons I think that is possible is that the normal corrections that accompany a normal leg up have been absent. That suggests a Spike & Reversal pattern from what is massive resistance at the opening range of the week for 2009---940 S&P.
"Interestingly, a Square of 9 chart shown yesterday and seen here reveals that 940 is opposite July 14/15th.
In my experience tuning points and square outs seem to be more powerful when the market is magnetized sharply smack into a potential time/price target."
No action in the indices today but we did see a reaction to earnings reports. Google (GOOG) was down -2.79% after posting inline numbers, IBM (IBM) was up 4.32% after exceeding the Street's expectations, after quite possible posting the more difficult to understand reports in history, General Electric (GE) was down 6.05%, Citigroup (C) was down 0.33% and Bank of America (BAC) was down 2.13%.
Earnings season will really kick off next week most of the S&P 500 will report second quarter results. Check out the trading radar for a preview and list of all major companies reporting earnings.
Next week will be longer then this week so rest up over the weekend. Have a great one!
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