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Morning Notes May 23, 2017 Market Summary

Market Summary
    The markets traded higher for the 3rd day in a row, as the “buy the dip” crowd kept chipping away at
the markets big losses from last Wednesday. The Indexes closed yesterday, within throwing distance of last
weeks highs at DOW 21,000, S&P 2400 and NASDAQ 6160, all pretty much on its own merits of strong 1st
Qtr earnings and improving outlooks going forward. If the markets traded in a vacuum, I would say that
the averages were “locked and loaded” and very ready to explode higher across the board, just like they
were last Tuesday, right before that business with the President, maybe, but not likely, asking or not asking,
Ex-FBI Chief Comey, to back off on the Mikey Flynn investigation, because he was a “good guy”.
    Anyway, the markets don’t trade in a vacuum and this morning, Investors are faced with another terror
abomination, a bombing of a Concert in Manchester U.K.. So far the markets are shrugging off the horrible
news, but with the averages near last week’s highs, I wonder if there’s enough fuel to push the averages through to new highs, especially with the attack in the U.K. and front of the 3-day Memorial Day weekend.
    This morning, the Trump Administration released its 2017 Budget and judging from various Politico’s reaction
to the news, this Budget as is, will be DOA in the Congress. Also on the slate today, we will hear CIA Director John Brennan’s testimony, on the CIA’s Russia Investigation at 10:00am and there’s always the possibility of a
surprise, which could affect the day’s trading, one way or another.
    Overnight the Global markets were quietly mixed and in early trading the DOW is up 40pts, the Yield on the
10 Yr is 2.25%, the Dollar is flat and Commodities are slightly lower.
Today we have the flash PMI Services and Manufacturing estimates for May out at 9:45am, followed by the
April New Home Sales at 10:00am, but none of this will move the markets, but tomorrows FOMC Minutes will.
 
I am working from 80 Broad and can be reached at 212 -417-8062
Today’s Early Markets
DOW Futures— up 50.00                          London – up 8.58
S&P – up 400                                            DAX – up 33.56
GOLD—$1260 July                                   Nikkei — down 67.84
OIL— $50.40 July                                     HangSeng — up 11.78
 
DOW RESISTANCE 21,000                   S&P RESISTANCE 2405
DOW SUPPORT: 20,800                       S&P SUPPORT: 2388/2380
$NASDAQ RESISTANCE 6160
$NASDAQ SUPPORT 6100

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