Market Summary
David Chojnacki S1F Market Technician
The Market once again opened to the upside, but this time continued a slow progressive move into positive territory. It was a methodical move on very weak volume, which was more typical of a Monday session. The major indices at the final bell were just off their highs for the session. At the close, the DJIA added 0.9%, the S&P moved up 0.78%, and the Nasdaq100 was up 0.8%. Breadth was positive, 2 to 1, on weak volume. RSI's rose in the session to the middle 50's and ROC(10)'s advanced, with all three major indices back in positive territory. MACD's remain below signal but are showing signs of turning up. The indices moved back above their 20D-SMA's in the session, but found resistance near the top of the recent trading range. The S&P traded over 1650 to 1654, and settled just a point above 1650 at 1651. We closed at a level that cannot confirm a move out of the range. We need to see more of a move to the upside to confirm the move. The VIX slipped 1.1% to 16.61. The S&P closed back inside its up-side channel and a confirmation will signal a short term bias to the upside. The S&P has near term support at1650, 1642-40 and 1637. More important support exists at 1625. Near term resistance sets up at 1662 and 1669. The Nasdaq100 has near term support at 2988, 2980 and 2975. Upside resistance for the Nasdaq100 sets up as 3000 and 3012. Yesterday's weak volume was most likely a result of investors hesitant to move in front of the FED's announcement today at 2:00 PM and then Bernanke speaking at 2:30PM. The Nikkei was up 1.8% overnight, while markets in Europe are slightly lower. Futures are mixed versus fair value this morning.
Major Economic Reports Today
Crude Inventories-10:30am FOMC Rate Decision-2:00pm
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