The bulls are trying to bounce back following yesterday’s subpar performance but we have expected a slight pause after the push past resistance at the beginning of the week. There appears there will be another test to the second wave of resistance like the one we had on Tuesday but the bears seem to have halted the momentum despite better-than-expected economic news this morning.
Initial Claims fell 29,000 to 343,000 versus expectations for a print of 369,000. The 4-week moving average came in at 381,000. Continuing Claims were 3.19 million versus a forecast for 3.21 million. Elsewhere, Retail Sales rebounded 0.3% in November while the PPI (Producer Price Index) fell 0.8%.
In IPO news, SolarCity (SCTY, $10.37, up $2.37) made its public debut this morning on the Nasdaq after offering 11.5 million shares at $8. The stock opened at $9 and has traded to a high of $10.59. The offering was originally for 10 million shares at a price range of $13-$15.
We mentioned Congress is set to adjourn for their holiday vacations tomorrow but an alert has been sent to the zombies they may have work overtime next week to try and get a deal done to avoid the Fiscal Cliff. Head red zombie held a press conference to address the lack of spending cuts from the blue zombies and the market hit fresh lows. Unless something gets done over the next 24 hours, Washington will have wasted another week of back-and-forth bickering instead of everyone meeting at the table.
It would be nice to see them fire up the coffee pot and spend an all-nighter in the chambers of the White House but they would require an extra-long work day and the zombies aren’t built for that.
Despite the deal or no deal debate, the indexes are holding support to a “T” as we head into the second half of trading. The Dow is down 30 points to 13,215 while the S&P 500 is off 3 points to 1,425. The Nasdaq is lower by 7 points to 3,007.
We have a lot to cover with our current trades so let’s get on it. Subscribers, check the Members Area for the updates and we will be back in the morning with a full report.