David Chojnacki S1F Market Technician
After a big move to the upside, following the FOMC decision on Wednesday, the Market decided to digest those gains yesterday. The major indices traded in a narrow range and finished the session mixed. The DJIA was the only major average to hit new highs in the session. At the close, the DJIA was up 11 points, the S&P slipped 1 point, and the Nasdaq100 gave up 11 points. Breadth was negative, 1.5 to 1, on average volume. RSI's rose for the DJIA and slipped for the S&P and Nasdaq100. ROC(10's) declined across the board and the Nasdaq100 dropped back into negative territory. The DJIA, which closed at a new high, also had its MACD cross above signal. The Nasdaq100 and S&P MACD's remain below signal. The Nasdaq100 is the only index of the big three that did not move to new highs after the FOMC decision. The Nasdaq100, which has been the leader since the start of the 2009 bull market, would need to move to new highs for the rest of the market to follow. There is some indication on the Nasdaq100 chart of a triple top and we will watch to see how this plays out. All three major indices developed a 'Doji' in the session. The VIX added 2.5% to finish at 14.15. There is support at this level for the VIX. The S&P near term support is now at 1808 and 1800. Near term upside resistance for the S&P sets up as 1810-12 and 1825. The Nasdaq100 near term support is now at 3488 and 3475. Near term upside resistance is now 3500 and 3512-16. The 10 yr. is trading at 2.94%. The Nikkei was up slightly over-night and European markets are mixed in early trade. Futures are slightly higher this morning versus fair value.
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