Market Direction Intraday Comments For Oct 24 2013 – Higher

The market direction outlook for today was for more sideways action. Both the Fast Stochastic and Slow Stochastic pointed to a pullback which would translate into sideways as the market tries to consolidate the gains made. It is impossible for the market to consolidate the recent gains in just one day. The number of new highs yesterday was incredible and far outstripped the normal day to day S&P 500. Nonetheless investors will have no talk of sideways action. Many investors took yesterday’s slight pullback as a signal that the market has enough strength to not pull back and give up any gains. That was enough for most investors to jump back in today and push the markets higher.

Weekly Initial Unemployment Insurance Claims

The Weekly Initial Unemployment Insurance Claims were skewed again this morning due to continuing computer problems in California. The Weekly Initial Unemployment Insurance Claims fell back to 350,000 which as investors know who follow this as a market timing system, means the markets will continue to climb.

Gold and ABX Stock

Intraday gold continues to look a bit better. Goldcorp earnings came out and while they reported a drop due to the drop in the price of Gold and a delay at their Cerro Negro project, but they still beat analysts estimates and the stock is up mid-day.

Barrick Gold Stock (ABX) reports earnings on October 30. Analysts are expecting .51 cents on average, whereas last year they earned .85 cents per share. Still though the stock is doing well and pushing back to above $20.00. It looks poised to break out from the most recent intraday high of $20.99 on August 27. Hopefully they will meet or exceed analysts earnings but it’s a tough call based on the declining price of gold.

Barrick gold stock 6 month chart

Market Direction Outlook Intraday

The 1 minute S&P 500 intraday chart is below. You can see that the same intraday pattern developed today. In the morning the market put in 3 lows with the lower low just before 11:00 AM. This is an incredibly common pattern now throughout this rise in the S&P. It seems that as long as that morning low holds, investors jump in and start buying. The rest of the day so far the market has put in a very nice grinding action as it has climbed higher.

Market Direction S&P 500 moving higher

Market Direction Outlook Into The Close

Into the close I believe the market will slip sideways from here and probably close just above the $1750 level. I will check the technical indicators at the close but investors seem almost worried that they will miss out on this ongoing rally and like a true bull market, investors are jumping in the higher the market moves. New 52 week highs are already at 719 around 1:40 and new lows around 119. These numbers show the continuing overbought nature of the market direction. One day cannot consolidate the recent gains and the market will rest but in past rallies this year the market has sometimes rested for only a day or two before pushing higher. That would appear to be the case today.

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