The market has traded in a tight range today as the bulls look to hold the first wave of support while the bears are trying to extend their momentum. The major indexes are on track for their second weekly loss in-a-row which hasn’t happened since August and the market is at a critical stage.
Currently, the Dow is up 8 points to 11,032 while the S&P 500 is up 4 points to 1,182. The Nasdaq is higher by 13 points to 2,483.
If the bulls fail to hold Dow 10,800; S&P 500 1,150; and Nasdaq 2,400 – then we could easily fall back into a trading range or worse. The good news is if the market can hold support then it has a chance to do something really special going forward.
As far as economic news, the Labor Department reported the consumer price index (CPI) rose by 0.2% in October from September’s 0.1% pop. Excluding fuel and energy, the core CPI was unchanged for the third straight month. Wall Street was expecting slightly higher numbers.
Elsewhere, the Commerce Department said U.S. housing starts fell 11.7% in October to a seasonally adjusted annual rate of 519,000. The suit-and-ties had forecast a number of 590,000 starts.
No news, yet, on Dendreon (DNDN, $35.87, flat) which is still halted pending an announcement. We sent out a New Flash earlier this morning as Provenge awaits its fate.
There is also a lot of action in Human Genome Sciences (HGSI, $25.42, down $0.46) after an advisory panel recommended approval of its lupus drug, Benlysta, while analysts questioned its effectiveness. A final decision is expected in early December by the FDA which usually follows the board’s recommendations.
As usual, we have a lot to cover in our Members Area as we have 2 NEW TRADES for today! We also have some important events coming our way concerning a few of our other trades. Let’s get on it!
We will be back in the morning at 9am with our next update and if we get some news on Dendreon, we will try to send out another News Flash.