BMO 290507

From Briefing.com:

Tuesday, May 29:

• Earnings: HJ Heinz (HNZ), BMC Software (BMC), Borders Group (BGP)
• Economic Data: Consumer Confidence
• Events: None
• Conferences: Merill Lynch Small Cap Technology Healthcare Conference
• Fed Speakers: None

My weekly candles show that a) Dow is touching the 161.8% retracement level, b) Nasdaq is sitting on the fence with a rickshawman, c) S&P is on the 100% retracement level. Also, the 2 'investor's fear gauge' are having a bullish harami at the end of a consolidation. The day candles, however, tells a different story.

Dow Jones Industrial Index 13,507.28 +66.18


















Now we can see that the daily candles are sitting on the 61.8% retracement level. Is it ready to go up? I think it's too early to tell now(at 12:02am ET) because there will be 2 datas coming out. The overall direction should be up: I'm not 100% sure it will go up, but I'm 70% sure it will not go down more than the 13,450 level.

1st intraday resistance: 13,533.93
2nd intraday resistance: 13,585.49
1st intraday support: 13,483.12
2nd intraday support: 13,450.98

5 day interday high(resistance): 13,624.56
5 day interday low(resistance): 13,425.43

Direction for 290507: UP

NASDAQ Composite Index 2,557.19 +19.27


















The Nasdaq is somehow more consistent within the week and day candles - both are sitting on a support level and consolidating. I think it will go up.

In addition, the VXN....
...is showing a bearish Harami at the end of a consolidation. This means the Nasdaq has a very high chance of rallying.














1st intraday resistance: 2,569
2nd intraday resistance: 2,580
1st intraday support: 2,557
2nd intraday support: 2,550

5 day interday high(resistance): 2,601
5 day interday low(resistance): 2,531

Direction for 290507: UP

S&P500 Index 1,515.73 +8.22


















Sitting in between 2 retracement levels is a sign of consolidation. As S&P is a widely diversified index, I guess it is really going for a short-term consolidation before tomorrow's FOMC minutes and friday's action-packed data announcements. However, bearing in mind there's not much market-moving news today, the S&P will definitely take some modest gains.

1st intraday resistance: 1,517
2nd intraday resistance: 1,523
1st intraday support: 1,512
2nd intraday support: 1,507

5 day interday high(resistance): 1,532
5 day interday low(resistance): 1,505

Direction for 290507: UP

CBOE Volatility Index 13.34
Another bearish Harami at the end of a consolidation. The market is going to be less volatile today. Less volatility = bullish market!














Conclusion
Today is a relatively quiet day with not much economic data ahead. Today there will definitely be some gains before we tank tomorrow before the FOMC minutes. Modest upside only.

Direction for 290507: UP