MV Weather Report: Gusts of Earnings Expected
Rain or shine, we reivew the day's biggest stock stories.
There wasn't a lot of news today but investors were happy to take stocks to new year-to-date highs while waiting for the bulk of earnings announcements later in the week.
The S&P 500 hit a new intra-date high for the year today at 1100 before closing at 1097, or a gain of 0.93%. Since the S&P 500 tagged its 50-DMA over two weeks ago, the index has closed higher 9 of the past 11 sessions.
On today's Buzz and Banter, Professor Kevin Depew gave his thoughts on were the S&P 500 may be headed.
"The S&P 500 will record a TD Sell Setup today with a close above 1073.19. Given the fact the daily TD Range Projection suggests we will close above the top of the range, it seems a given the 9 will record.
"However, the 9 will not be "perfected" until the high exceeds bar 7's high of 1096.56. That could still happen today, we will see. Once a perfected 9 records we should anticipate a "correction" following this momentum phase within 1-4 bars.
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"This "correction" is likely to be amplified because this week we are recording a TD Sequential 13 sell signal on the weekly chart.
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"An interesting thing to note on the weekly chart is the efficacy of the TDST Up breakout which qualified the week of July 24. This qualified break told us there was a high probability of the SPX proceeding to a full TD Sequential Countdown sell signal, which this week has now occurred.
"To provide further context on the monthly chart, remember this month's bar is bar 6 of a potential 9. If the market is going to record the 9, which would occur in January, then this month will need to close above the close four bars earlier (919.32) to continue the count, November will need to close above 987.48 to record a 7, then bar 8 or 9 must exceed at least this month's high to perfect. I put this out there as levels to watch as/if the sell setup and weekly sell signal take hold."
With today's close clearly above 1073 the S&P has recorded a TD sell set up. With today's high right at S&P 1,100 (doesn't it always seem like the market loves round numbers?), a TD sell set up recorded, and the bulk of earnings season coming over the next two weeks; it may be time for bulls to start declaring victory in some winners.
Tomorrow will be a busy day for traders as it's loaded with econ and earnings. Before the bell Building Permits, Housing Starts, PPI, and Core PPI will be released.
On the AM earnings front, we'll hear from companies like Brinker (EAT), Caterpillar (CAT), Coca-Cola (KO), Pfizer (PFE), and United Technologies (UTX). During the PM session, we'll hear from Gilead (GILD), Intuitive Surgical (ISRG), Sandisk (SNDK), and Yahoo! (YHOO).
For those that haven't seen, Minyanville has launched Ticker Talk on our homepage. Think of it like the Buzz and Banter for everyone. So far, Buzz editor Terry Woo and myself have been posting our thoughts on it. Come join the conversations!
Have a great night!
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