Fort 1100
Friday, October 23, 2009 at 06:49AM Tighten that helmet chin strap..SPX1100 in the futures is in view again!. But, this time the helmet is not to be on the defensive and to be bounced around, it's for a possible offensive soon to Fort 1100 for a battle!
How that happen overnight?. Well, the market participants can be quite rational after a good nights sleep. Sooner than later, the market realized there was NO FUNDAMENTAL reason for Wednesdays sell off and once 1075 held (the gap we`ve noted 1079-1075) our beloved underlying bid took over. There was NO Fundamental reason for the ramp up in the afternoon, a few reasons will be cited, but just like Wednesday's reasons they will be forgotten and the market will act on something new.
Despite a bunch of DOW co`s positive earnings reports premarket , the market continued to sell off after the opening bell. Why???.....As we noted, those not involved in the selling in the previous days 1 hour sell off would initially add to it the morning. The positive DOW reports were being ignored and some calming fundamental eco data, as well. Why???... The sentiment was just too awful in the morning after the fast sell off, nobody except say a place called DJIM was looking for a bounce. Once we tested the overnight lows and previously noted gap, the market found it's footing and a reversal was in motion.
Right now, after DOW components eps', some positive regional bank eps (PNC STI), Cards AXP & COF, most notably…..AMZN's incredible… huge Q (N.A sales up 23%, International up 33% blew away consensus and Guidance implies 21%-36% revenue growth).…Wait till you see some of the price targets increases on AMZN!. This upward EPS momentum trend may rest with MSFT for possible follow through or not in the morning. A second day follow through from the recent underperforming Financials is also needed for a chance to battle at Fort 1100. It looks better now for sector and the possibility of follow through exists because the Regionals relieved some of the fear generated in them by BAC C credit trends. Everyone felt better today making this the leading % sector.
After 2 failed attempts at SPX ES 1100, the Bears will be in force to defend..