So far, this week’s pattern is playing out like last week’s market moves as the bears pushed support until midweek before the bulls took over to push new highs. Of course, there are still 3 full trading days left, including the rest of today, but earnings will be out in force starting today after the bell, and if they are better-than-expected, then we could see a repeat of last week.
Today’s big news is Facebook (FB, $31.27, up $0.32) and what they will be announcing at 1pm (EST). There has been a lot of speculation on what on what Zuckerberg is “building” and guesses have ranged from a new campus to a new mobile phone. There are rumors they could announce a new partnership with Microsoft (MSFT, $26.94, up $0.05) that would include expanding Skype, or it could be a new search engine.
Wall Street is unsure if Facebook will match the hype that’s being created but we are sure mobile will play a major role.
The Dow has made a nice recovery off its lows as the blue-chips are only down 13 points to 13,495 after kissing 13,445 at the open. A positive close today will likely lead to a run past 13,600 this week.
The S&P 500 is off 2 points to 1,468 after falling to a low of 1,463. This is still 1% above the 1,450 level but we are watching support like a hawk. A close above 1,472 would be very bullish for the rest of the week and could lead to a run past 1,500 over the short-term.
The Nasdaq is getting hit for 13 points and is at 3,103 after a print of 3,093 shortly after the open. The 3,100 level has been strong support since the beginning of the year and it is important the bulls hold this level today. (continued…)
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