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Market Daily Percent Change
| NDX | 2031.34 | +34.04 |
| DJI | 12992.66 | +94.28 |
| SPX | 1423.57 | +14.91 |
MARKET COMMENTARY: for Friday, 16-May-2008
Commentary posted 15-May-2008 at 17:55 CT
Thursday's Action:
Technology stocks blazed the trail for today's rally, as trading closed with all three major U.S. indices experiencing gains for the session. Major overseas markets have posted mostly higher results for Thursday. London's FTSE was up 0.58%, Frankfurt's DAX closed down 0.03%, and Paris' CAC finished up 0.04%. Japan's Nikkei was up 0.94%; Hong Kong's Hang Seng closed down 0.08%, and Sydney's All Ordinaries Index finished up 0.41%. Market breadth was positive with NYSE advancing issues over declining issues by 2.46, and up volume over down volume by 3.64; Nasdaq advancing issues over declining issues by 2.20, and up volume over down volume by 3.88. Leading sectors were Gold, +3.88% and Oil Services, +2.86%. Laggards were Utilities, -0.31% and Health Care, -0.11%. Nasdaq 100 futures closed 39.25 pts higher to settle at 2035.75, while the S&P's settled 16.80 pts higher at 1424.60.The Short Term Outlook; 1-5 Days:
Today's price action favors making higher highs tomorrow, but the S&P's
have a better chance of closing lower on the day.
Negative Divegence:
The NAHL closed lower today while the SPX closed higher, a bearish sign for tomorrow.
Futures Market Focus:
A greater-than-expected increase in natural-gas inventories pushed the commodity to a loss of 20 cents per session, and crude oil pulled back from its highs of the day in sympathy. The June-dated crude contract climbed as high as $126.55 in intraday activity, but pulled back to settle at $122.20 per barrel, a loss of $2.02 for the day.
Friday's Look-Ahead:
The 60-mn SPX chart below shows the StochRSI indicator in the SELL zone. For tomorrow, resistance for the S&P's comes in at 1430 and then 1436. Support lies at 1413 and then 1404.
Friday's Reports:
The state of the housing market will be in focus tomorrow with the release of April building permits and housing starts data (8:30 AM ET). Economists expect both readings to fall to their lowest levels since 1991. Separately, the preliminary University of Michigan sentiment survey is set for release at 10:00 AM ET.Charts and data appearing in today's column are courtesy of:
StockCharts.com
FutureSource.com
SchaeffersResearch.com