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Today's Technical Outlook - 10/21/2013

Market Summary

David Chojnacki S1F Market Technician

With no major economic news and Washington kicking the can down the road for now, investors concentrated on earnings, specifically GOOG. An increase in profits for Google sent it soaring and the Market followed. The Nasdaq100 was the big winner on Friday as techs followed Google's strong performance. The DJIA and S&P rose in the session, but more moderately. At the close on Friday, the DJIA was up 28 points, the S&P gained 0.65%, and the Nasdaq100 up a healthy 1.5%. Breadth was positive, 2.4 to 1, on above average volume. For the week, the DJIA gained 1%, the S&P moved up 2.4%, and the Nasdaq100 gaining 3.7%. RSI's moved up in Friday's session and ROC(10's) advanced. MACD's became positive last week. The S&P and Nasdaq100 moved to new highs, while the DJIA lagged. The DJIA did move above its 61% Fibonacci retracement of 15332. The Nasdaq100 and S&P are above their Bollinger Band top. The VIX, which has been extremely volatile, ended the week at a tame 13.04.

 

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David Chojnacki S1F Market Technician

 

MAJOR INDICES Short term support and resistance level

DJIA

close 15399

SP500

close 1744

N100

close 3353

15332

15400

1740

1750

3350

3362

15325

15450

1737

1762

3337

3375

15226

15500

1725

1775

3325

3388

15180

15676

1712

1788

3312

3400

15163

15700

1700

1800

3302

3412

15090

15750

1698

1804

3300

3425

15000

 

1695

1812

3288

3429

14900

 

1690

1825

3275

3437

14802

 

1688

 

3262

3450

Major Economic Reports Today

Existing Home Sales-10:00am Crude Inventories-10:30am

 

Long term technicals remain positive, with the Nasdaq100 and S&P making new highs last week. The Nadaq100 broke above a 3yr. trend-line. The S&P 3yr. trend-line may provide some resistance at 1775. Short term technicals continue with a positive bias. Key short term support for the Nasdaq100 is at 3162 and 1662 for the S&P. Near term, we will be watching 1740 and 1725 to provide support for S&P. A break below and the S&P will want to test 1690. We get September unemployment numbers this week(Tuesday), along with Durable Goods numbers. The Nikkei was up moderately overnight, while Europe is mixed in early trade. Futures are just slightly positive versus fair value pre-market.

 

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