9:10am (EST)
When we left you yesterday at 1pm, the market was slightly higher, and we were waiting to hear the “minutes” from the latest Federal Open Market Committee (FOMC) meeting. Once the language started to hit Wall Street, the market quickly surrendered its gains and headed south.
There was nothing new in the Fed’s minutes as they revealed the pace of the economic recovery has slowed in recent months. Although there were some Fed members that wanted more supportive measures, many agreed the recovery is not clicking on all cylinders.
The cautious comments pushed the market back into negative territory before the bulls battled back to make it a respectable fight. Yesterday also marked the end of the month and the August numbers weren’t pretty.
The Dow managed to hold the 10,000 level after dropping below it at the start of trading. The index added 5 points and finished at 10,014 but traded to a low of 9,941. The gains were capped at 10,073 and current resistance remains 10,100-10,200. Our downside target for the Dow is 9,800 and then 9,500. For the month of August, the index fell 4.3%.
The S&P 500 stayed below our 1,050 target but added a half-point to finish at 1,049. The index traded to a low of 1,040 and support held (for now) as we mentioned this would be a popular battle ground yesterday. A break below this region sets us up for a test down to 1,020 and then 1,000. From there we are looking for 950. As for August, the index dropped 4.7%.
The Nasdaq once again lagged its counterparts and slipped 6 points, finishing at 2,114. For the month, the index tanked 6.2% but is still finding support at the 2,100 level.
Look for resistance to be tested at the open as futures are showing a strong start this morning despite a worse than expected ADP jobs report.
Dow futures are up 102 points to 10,108 while the S&P 500 futures are higher by 12 points to 1,061. The Nasdaq 100 futures are showing a 26 point pop and are at 1,792.
There is more economic news on the way today and we are expecting another wild and choppy session. Subscribers, check for the updates in the Members Area this morning.
Tags: FOMC, option picks, stock options trading
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on Wednesday, September 1st, 2010 at 9:09 AM and is filed under Market Analysis, Market Commentary.
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Futures Showing Strong Start
9:10am (EST)
When we left you yesterday at 1pm, the market was slightly higher, and we were waiting to hear the “minutes” from the latest Federal Open Market Committee (FOMC) meeting. Once the language started to hit Wall Street, the market quickly surrendered its gains and headed south.
There was nothing new in the Fed’s minutes as they revealed the pace of the economic recovery has slowed in recent months. Although there were some Fed members that wanted more supportive measures, many agreed the recovery is not clicking on all cylinders.
The cautious comments pushed the market back into negative territory before the bulls battled back to make it a respectable fight. Yesterday also marked the end of the month and the August numbers weren’t pretty.
The Dow managed to hold the 10,000 level after dropping below it at the start of trading. The index added 5 points and finished at 10,014 but traded to a low of 9,941. The gains were capped at 10,073 and current resistance remains 10,100-10,200. Our downside target for the Dow is 9,800 and then 9,500. For the month of August, the index fell 4.3%.
The S&P 500 stayed below our 1,050 target but added a half-point to finish at 1,049. The index traded to a low of 1,040 and support held (for now) as we mentioned this would be a popular battle ground yesterday. A break below this region sets us up for a test down to 1,020 and then 1,000. From there we are looking for 950. As for August, the index dropped 4.7%.
The Nasdaq once again lagged its counterparts and slipped 6 points, finishing at 2,114. For the month, the index tanked 6.2% but is still finding support at the 2,100 level.
Look for resistance to be tested at the open as futures are showing a strong start this morning despite a worse than expected ADP jobs report.
Dow futures are up 102 points to 10,108 while the S&P 500 futures are higher by 12 points to 1,061. The Nasdaq 100 futures are showing a 26 point pop and are at 1,792.
There is more economic news on the way today and we are expecting another wild and choppy session. Subscribers, check for the updates in the Members Area this morning.
Tags: FOMC, option picks, stock options trading
This entry was posted on Wednesday, September 1st, 2010 at 9:09 AM and is filed under Market Analysis, Market Commentary. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.