Intraday Market Commentary From Stifel Nicolaus - August 27
From Elliot Spar of Stifel Nicolas
Selling the opening rally worked again. How easy is this becoming? The bears were on their way to the bank after the Intel pre-announcement but I don’t think they stayed on the Fidelity green path. Everyone got short and then the Bernanke prepared statement said the Fed stands ready to act. When traders realized that INTC was going to reopen flattish, the buyers came back in a big way. Did anyone notice that the key 1040 level held on the S&P 500? How about that VIX? It held below Wednesday’s peak. What’s next? There are overhead down trend lines that have to be taken out in
order to change the short-term trend:
Down Trend lines: SPX 1070
Nasdaq Comp 2160
RUT 605 (a bit above now)
Bottom-line: 1040 is your stop out point on the S&P 500 for your long market type stocks.
COMMODITY IN FOCUS
October Crude Oil
CL/V0 1 74.27 (+ .91)
Bulls have a lot of work to do here. First down trend line at 74.50 and then 76. A slippery chart.
INTEREST RATES IN THE NEWS
10 Yr. Treasury Yield Index TNX 1 26.29 (+ 1.30)
Looks like a key reversal day. A close above 25.80 would be another plus for the TNX. Next resistance up at 26.80 area.
VOLATILITY INDEXES IN FOCUS
VIX, VXN, RVX
Today’s drop has them all testing up trend line support. A clear break implies higher stock prices.
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