A Few Thoughts Before the Open:
The employment numbers released this morning were horrible. As a result we are looking at a sell off on the open. I’ve updated my support and resistance levels on some of the indices I track.
In looking at the various indices I track, I have the following comments.
Dow Jones Industrial Average: The Dow Jones Industrials closed at 11,493.57 The Dow has basically rallied to the upper end of its trading channels. I feel that our downside support level remain at 11,006.22 on a closing basis, and the new upside resistance level, while somewhat in flux remains around the 11,613.30 level on a closing basis.
S&P 500 ‘SPX’: The S&P 500 closed at 1,204.42 I see upside resistance on the S&P 500 at 1,225.85 and downside support at 1,127.79 on a closing basis.
NASDAQ 100 Index ‘NDX’: The NASDAQ 100 closed at 2,219.05 I continue to see downside support on the NDX at 2,100 and upside resistance at 2,292.34.
The Dow Jones Transportation Average: The Dow Transports closed at 4,599.85 I see upside resistance on the Dow Transports at 4,749.99 and downside support level at 4,320.05 on a closing basis.
M.S. Commodities Related Equity Index ‘CRX’: The ‘CRX’ closed at 904.71. I see upside resistance on the ‘CRX’ at 924.89 and downside support at 847.10
KBW Banking Index ‘BKW: The ‘BKW’ closed at 37.31. I see upside resistance on the ‘BKW’ at 41.42 and downside support at approximately 36.33 on a closing basis.
S&P Banking Index ‘BIX’: The ‘BIX’ closed 116.91. I see upside resistance on the ‘BIX’ at 117.52 and downside support at 100.96 on a closing basis.
Amex Broker/Dealer Index ‘XBD’: The ‘XBD’ closed at 88.99 I see upside resistance at 92.97 and downside support at 80.87 on a closing basis.
S&P Insurance Index ‘IUX’: The ‘IUX’ closed at 161.49 I see upside resistance on the ‘IUX’ at 175.13 and downside support at 143.80 on a closing basis.
Amex Gold & Silver Index: The Amex Gold & Silver Index ‘XAU’ closed at 219.29 I see upside resistance on the ‘XAU’ at 220.36 and downside support at 208.78
Amex Oil & Gas Index: The Amex Oil & Gas Index ‘XOI’ closed at 1,154.13 I currently see upside resistance on the ‘XOI’ at 1,228.18 on a closing basis. I am expecting the ‘XOI’ to continue to move lower and test 1,141.92 on a closing basis.
M.S. Cyclicals Index: The M.S. Cyclicals Index ‘CYC’ closed yesterday at 866.24 I currently see upside resistance on the ‘CYC’ at 913.44 and downside support at 868.97 on a closing basis.
M.S. Consumer Index: The M.S. Consumer Index ‘CMR’ closed at 716.31 I currently see upside resistance on the ‘CMR’ at 725.78. and downside support at 691.44 on a closing basis.
I’ll be back over the weekend.