Stocks Mixed On Economic Data

Lower than expected GDP and manufacturing readings restrained stocks on Friday.

The ISDEX http://www.wsrn.com/apps/ISDEX/ slipped 1 to 179, and the Nasdaq lost 2 to 1930. The S&P 500 declined fractionally to 1139, and the Dow rose 22 to 9851. Volume declined to 1.34 billion shares on the NYSE, and 1.81 billion on the Nasdaq. Decliners led by a few issues on the NYSE, and by 18 to 17 on the Nasdaq.

Novellus fell 8% on an earnings warning, and the semiconductor index lost 3% on the day.

Novell rose 7% after beating estimates, but Symantec lost 2.5% despite reaffirming guidance.

Cisco climbed 3% on a generally positive conference presentation.

Sun Microsystems , up 3%, said it will update guidance next Thursday.

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Dojis, dojis everywhere mean another day of indecision. The S&P (first chart) held onto the lower trendline of its bearish rising wedge today. That line should be higher than here on Monday, just above 1140, but it’s possible that the index could find support at 1132-1133 if it turns down on Monday, in effect redrawing that lower trendline. Resistance is 1143, 1150, 1155 and 1163. On the intraday chart (second chart), the S&P might be forming a bear flag, which could predict a move down to 1100. That line is also at 1140 on Monday. The Dow (second chart) has critical support at about 9775 on Monday. First resistance is 9900 and then 9993. The Nasdaq (third chart) has critical support at 1880 on Monday, and 1915 is an important support before then. Resistance is 1935-1941, 1954, and then 1968, a critical level. Monday is a potential cycle turn window for the market. On the bearish side, commercial futures traders are now long gold, and they got shorter on the S&P and Nasdaq.

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