David Chojnacki S1F Market Technician
Weakness in Europe transferred to our Market at the opening. There was little news to give direction to the markets during the session. During the session the indices traded in a very narrow range, on little volume, and closed slightly negative. At the close, the DJIA lost 21 points, the S&P slipped 0.92 of a point, and the Nasdaq100 dropped 0.92 of a point. Breadth was negative, 1.3 to 1, on below average volume. RSI's remained fairly stable and continue bullish. ROC(10's) were lower across the board, but remained positive. The ADX remains high indicating upside momentum is strong. The MACD for Nasdaq100 crossed back above signal, but remains below for the DJIA and S&P. We have previously noted that this has been a result of the extended sideways action. It is a very important directional indicator, so we will closely monitor. The S&P traded in five point range during the session and was almost flat at the final bell. Near term support sets up as 1512 and 1500. Upside resistance remains at 1525 and 1540. The Nasdaq100 found resistance just near the 2775 level during the session and closed just a point below. Expect 2775 and 2788 to provide near term resistance. Near term support sets up as 2762 and 2750. Financials were one of the stronger sectors in yesterday's trade and the XLF closed at 17.68 a new high not seen since 2008. The VIX lost 0.6% to 12.94 on the day, remaining at 5 year low levels. European markets are up slightly, in early morning trading. State of the Union speech tonight, perhaps we may hear something new. Futures are mixed early this morning versus fair value.
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