David Chojnacki S1F Market Technician
After opening to the downside and hitting the lows of the day just after the first half hour, the indices made a steady climb to moderate gains the remainder of the session. The averages did trade between technical levels, but at the final bell had managed to accumulate nice gains. At the close, the DJIA gained .8%, the S&P added .79%, and the Nasdaq100 was up .9%. Breadth was positive, 2.3 to 1, on above average volume. RSI's moved back into the 50's and ROC(10's) are firmly positive and advanced in the session. MACD's continue above signal for all three major indices. As noted above, the indices traded around technical levels for the entire session. The Nasdaq100 traded between 2613, on the low end, to 2666, and closing at 2665. We have the 50% retracement level(2661), the 150D-SMA(2665) and the 200D-SMA(2667), all providing resistance at the top of today's range. The S&P found support right near its 150D-SMA(1384), and met resistance just near its 52 week trend-line at 1411. The DJIA had found resistance at its 150 and 200D-SMA's, 12987 and 12992, respectively. It did close above its 20D-SMA(12893). After last week's reversal, we had consolidation in the beginning of the week and yesterday' session is signaling that the reversal may continue. A confirmation from the Nasdaq100 would be required before we can get an 'all-clear' for a short term upside bias. The S&P closed just below its 52 week trend-line(1411), and we look for that level and 1420-25 to provide near term resistance. Support is now at 1400 and 1393. The Nasdaq100, as noted earlier, found resistance right near some key levels. Watch for the ability to hold the 2661-67 area before it can get more momentum to move further to the upside. Look for support at 2650 and 2625. European markets were strong overnight and that looks to spill over into our markets. Futures are up moderately versus fair value.
Major Economic Reports Today
Initial/Continuing Claims-8:30am GDP-8:30am Pending Home Sales-10:00am
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