David Chojnacki S1F Market Technician
We started the week with the indices falling in the first minutes of the open. They quickly found a floor and made a slow move to the upside trying to get into positive territory. In the final hour, there was another sell-off which left the indices in the red at the final bell. While the DJIA and S&P were little changed, the Nasdaq100 was off 0.6% as AAPL fell 1.3% contributing to its demise. At the close, the DJIA was down just 20 points and the S&P was off 3.2 points. Breadth was negative, 1.5 to 1, on average volume. RSI's pulled back some and are now in the lower to mid 60's for the big three. The recent consolidation, now 7 days old, has removed some of the over-bought condition. ROC(10's) remain positive but declined in the session. The Nasdaq100, which gapped down on AAPL's big move, had its MACD drop below signal. This is something to watch, but the Nasdaq100 did hold 2825, which is important near term support. On the upside, look for resistance at 2850 and 2875. The S&P was again trading in a technical range and remains below the 1462-1465 near term resistance level. Support can be found at 1450 and 1440. The DJIA also continues to consolidate in a narrow range, much like the S&P. We briefly traded above the recent closing high of 13596 yesterday, but quickly pulled back below. Support continues at 13500 for the DJIA. The VIX continues at low levels, but added 1.2% in the last session to 14.15. In contrast to the VIX, we have had a recent widening of the Bollinger Bands, which suggests the potential of increased volatility. Though AAPL was weak yesterday, we saw GOOG hit new highs and Financials held their own. Consumer confidence this morning should be interesting. Futures are slightly positive this morning versus fair value.
Major Economic Reports Today
Case-Shiller Index-9:00am Consumer Confidence-10:00am FHFA Housing Price Index-10:00am
ALL PRICES NOTED IN THIS PUBLICATION ARE AS OF THE CLOSE ON TRADING PRIOR TO TODAY'S DATE, UNLESS OTHERWISE INDICATED
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