Top Line: As the market closed on Thursday, GOOG announced their earnings and caused quite a move in its stock price. After closing the regular session down about 5 to about 450, GOOG jumped to 525 on the news. This move is likely to carry over to trading on Friday so that will continue the up move at least until morning.
For the trading day, there was not much going on at all. After Wednesday's giant move, it seemed that the traders were tired and just wanting to get the day over with. Then came GOOG's news and away we went again.
The Dow closed at 12,620 on Thursday and from the looks of the overnight futures there could be some upward movement in the morning. We have been talking about the 12,750 area saying that it holds the potential to resist the upward move. A move through 12,750 could get us back to the 13,000 level, a very interesting place for the Dow to be.
The 12,750 level has been a critical point for the Dow for several months now and you can check that on BigCharts.com at the link on the left. Take a look at a one year chart of the Dow, symbol INDU. Draw a line right at 12,750 and see where the market has bounced off of that line both from the top and the bottom. This type of technical action is real.
We were getting a little concerned that this counter trend rally was already over but with trading since Tuesday afternoon we feel much better. With a rally in the works, we now need to find a good entry point for the next move down which should be a strong move.
For now, we will just watch and wait.
Yes, there was some news today, but we are more interested in the news from the market itself.
FSI: 77.37 (this may change on Friday if GOOG's price move can hold)
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