Market Summary
David Chojnacki S1F Market Technician
The Market opened to the upside on strength in Europe and hopes of a Cyprus agreement that would have little impact on the world markets. The indices traded in a very narrow range, but held on to small gains going into the close. There was an added pop after the FOMC statement and Bernanke speech, as investors were assured the 'green crack' will continue. At the close, the DJIA added 55 points, the S&P moved up 0.6%, and the Nasdaq100 gained 0.67%. Breadth was decidedly positive, 3 to 1, on below average volume. RSI's moved up slightly and ROC(10's) advanced for all three major indices. Once again the rise in the indices moves the S&P closer to its all-time closing high of 1565. The Nasdaq100 closed just above 2800, but below the top of the range it has trading in for the last 12 sessions (2763-2812). The VIX moved down 11.9%, to close at 12.67, moving down after two big sessions to the upside. The Dow Transports were the one index showing weakness in the session as it was down 0.35%. Poor earning by FDX, which was down 6.8%, helped pushed the tranports lower. This raised some buzz among investors as FDX is a good barometer of economic health. A weak CAT, down 1.5%, added to concerns, as it also fell below its 200D-SMA. The S&P now has resistance at 1562-65 and 1567. Support now sets up at 1556, 1550and 1540 near term. The Nasdaq100 held the 2800 level, but there is significant resistance at 2812 near term. Above this level, look for 2825 to provide resistance. Some key economic reports today and Europe is back under the microscope. European markets are moderately lower this morning. Futures are lower early this morning versus fair value.
Major Economic Reports Today
Initial/Continuing Claims-8:30am FHFA Housing Index-9:00am Existing Home Sales-10:00am Phila Fed-10:00am Leading Indicators-10:00am NatGas-10:30am
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