FirstAlert[tm] 5/8: S&P Balks At Critical Resistance

fa_logo_sq_225px-w_bwMay 8, 2009 (FinancialWire) (By Frank Kollar) — The S&P 500 Index (SPX) touched its January 2009 rally highs on Thursday, May 6, and immediately reversed to the downside, closing with a 1.3 loss. It was not a bearish outside reversal day, but it came close. The S&P Deposit Receipts (NYSE: SPY) can be traded as a proxy for the SPX.

The Nasdaq 100 Index (NDX) has traded not only above its early 2009 highs, but also above its November 2008 rally highs. This is bullish, but the S&P 500 Index is the critical index to watch for changes in overall market direction The Powershares Nasdaq 100 ETF (QQQQ) can be traded as a proxy for the Nasdaq 100 Index.

The pullback is unlikely to end with only one down day, though in the current volatile markets anything can happen. There is support at SPX 874.09. After this, the next support is down at SPX 827.

The Investrend Earnings Calendar features Gartner (NYSE: IT), expected at $0.12 a year ago versus $0.14 a year ago; MI Developments (NYSE: MIM), expected at $0.62; Petroleum Development (NASDAQ: PETD), expected at $0.49 versus $0.89 a year ago; Scripps Networks Interactive (NYSE: SNI), expected at $0.36.

The Investrend Economics Calendar lists Employment Report for April (8:30 a.m.), Wholesale Trade for March (10 a.m.).

The Investrend Events Calendar showcases AA Shareholders Meeting; BG Annual General Meeting of Shareholders; FFIN, CSFL, BXS, ORZK at Gulf South Bank Conference; GS Shareholders Meeting; SPG Shareholders Meeting.

The Investrend Money Index is an indicator of the depth of market direction or indirection. While not always including the same stocks, the NYSE/NASDAQ 50 Most Actives indicate the direction in which the mass of money is flowing. Last session’s trading showed 14 advancers versus 35 decliners and one unchanged. Advancers were led by Genworth Financial (NYSE: GNW) up 20.47%, Capital One Financia (NYSE: COF) up 18.40%, Huntington Bancshares Incorpora (NASDAQ: HBAN) up 12.75%, Ultrashort Real Esta (NYSE: SRS) up 11.24%, Financial Bear 3x (NYSE: FAZ) up 8.24%, Bk Of America Cp (NYSE: BAC) up 6.46%. Decliners followed Cell Therapeutics, Inc. (NASDAQ: CTIC) down 15.62%, Symantec Corporation (NASDAQ: SYMC) down 14.79%, Ultra Real Estate Pr (NYSE: URE) down 12.53%, Financial Bull 3x (NYSE: FAS) down 8.73%, Oceanfreight Inc. (NASDAQ: OCNF) down 8.18%, Wells Fargo & Co New (NYSE: WFC) down 7.75%, Las Vegas Sands Corp (NYSE: LVS) down 7.41%, Nvidia Corporation (NASDAQ: NVDA) down 7.18%, Dell Inc. (NASDAQ: DELL) down 6.90%, Applied Materials, Inc. (NASDAQ: AMAT) down 6.55%, On Semiconductor Corporation (NASDAQ: ONNN) down 6.24%, Alcoa Inc (NYSE: AA) down 6.19%, Dryships Inc. (NASDAQ: DRYS) down 6.17%.

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Investrend Website of the Day: http://www.climateprogress.org/

Quote of the Day: “Never kick a fresh turd on a hot day.” Harry S Truman

Today is: World Red Cross Day.

Happy Birthday: Edward Gibbon, Jean Henri Dunant, Harry S. Truman, Robert Johnson, Sir David Attenborough, Don Rickles, Sonny Liston, Ricky Nelson, Toni Tennille, Alex Van Halen, Melissa Gilbert, Bobby Labonte.

Today in History: Hernando de Soto reached the Mississippi River in 1541 and named it Río de Espíritu Santo. Branded a traitor during the Reign of Terror by revolutionists, French chemist Antoine Lavoisier, who was also a tax collector with the Ferme Générale, was tried, convicted, and guillotined all on one day in Paris in 1794. Zachary Taylor defeated a Mexican force north of the Rio Grande in the first major battle of the Mexican-American War in 1846. At Gilmore’s Gardens in New York City in 1877, the first Westminster Kennel Club Dog Show opened. In Martinique, Mount Pelée erupted in 1902, destroying the town of St. Pierre and killing over 30,000 people. Edward George Honey first proposed the idea of a moment of silence in 1919 to commemorate The Armistice of World War I, which later resulted in the creation of Remembrance Day. The Battle of the Coral Sea came to an end in 1942, the first time in the naval history where two enemy fleets fought without visual contact between warring ships. German forces agreed to an unconditional surrender in 1945, to be known as Victory in Europe or VE Day. In 1999, Nancy Mace became the first female cadet to graduate from The Citadel military college.

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