MV Weather Report: Bears Get Their Day in the Sun
Rain or shine, we review the day's biggest stock stories.
The banks really got beat up on this news. Take a look at JPMorgan (JPM), Wells Fargo (WFC), and Citigroup (C), along with Bank of America. But were Bank of America's earnings all that different from Wells's or JPMorgan's? Could it be that a change in sentiment occurred over the weekend? This will be something to watch this week.
This morning on the Buzz and Banter, Professor Jeff Cooper gave his technical take on the S&P 500:
"7 is the number of reversal and often times panic, according to W.D. Gann.
"A daily chart of the S&P from my morning report shows that since the March low the index has traced out 7 'turn downs' (where the S&P traded below a prior sessions low). No turn down saw more than 1 to 2 days of lower lows.
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"At the same time, however, the SP has traced out an ascending triangle toward the 878 level mentioned on the Buzz on Friday. Often times falls out of an ascending triangle can be sharp and swift.
"The Weekly Swing Chart will turn down on trade below last weeks low of 835.59 while the 20 dma at 831/831 looks to be tested."
I would also watch the 20 DMA here, as mentioned above. Today it held, which is positive for the bulls; if this pullback is real, the 20 DMA will have to break at some point.
In addition to Turnaround Tuesday, tomorrow will be the first loaded day of earnings reports. These will move the market, and I'm curious to see the reaction - especially after this Bank of America quarter.
Some large companies reporting before the bell tomorrow are Brinker (EAT), Catipillar (CAT), Merck (MRK), United Technology (UTX), among others. After the bell, we'll hear from Capital One (COF), Gilead (GILD) and Yahoo (YHOO). For a full list of companies reporting, check out the trading radar.
All right, Minyans - have a great night!
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