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Today's Technical Outlook 1/21/2014

Market Summary

David Chojnacki S1F Market Technician

Mixed earnings results set the stage for a mixed market on Friday. Once again the indices traded in a narrow range, and have done so since the end of December. Prices fell to the downside after the noon hour, and put the S&P and Nasdaq100 into negative territory. The DJIA managed to hold on to a small gain. At the close on Friday, the DJIA was up 41.5 points, the S&P gave up 7.1 points, and the Nasdaq100 slipped 20 points. Breadth was negative, 1.5 to 1, on above average volume. There was a pick-up in volume at the close, as we had options expiration. RSI's were little changed. ROC(10's) were mixed with the DJIA moving back into positive territory. For the week, the DJIA added 0.1%, the S&P gave up 0.2%, and the Nasdaq100 gaining 0.7%. The Nasdaq100 MACD slipped back below signal, making all three indices below signal. The DJIA and S&P found support on Friday near their 20D-SMA's. The VIX was off slightly, to finish at 12.44. It continues to want to hold the 12 support area.

MAJOR INDICES Short term support and resistance level

DJIA

close 16458

SP500

close 1838

N100

close 3591

16414

16500

1837

1840

3588

3600

16400

16550

1835

1850

3575

3612

16300

16576

1825

1862

3563

3615

16250

16588

1812

1875

3550

3625

16100

16600

1807

1888

3540

3637

16036

16650

1800

1900

3537

3650

 

16700

1788

1912

3525

3660

   

1775

 

3512

3662

       

3500

3675

Click to enlarge

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TODAY'S DATE, UNLESS OTHERWISE INDICATED

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Major Economic Reports Today

No reports scheduled

 

Trading Trends

David Chojnacki S1F Market Technician

 

Long term technicals remain positive, as the near term consolidation continues. The major indices continue to develop a bullish handle since late December. Short term technicals remain positive, as the averages have moved sideways since the end of December 2013. Near term, the consolidation continues with MACD's remaining below signal and the only indication of weakness in the technicals. We see short term target for the S&P at 1870 and 3660 for the Nasdaq100. Earnings reports begin to pick-up this week and we expect them to be closely monitored by analysts. Not much in economic numbers this week. The Nikkei was up nearly 1% overnight. European markets are up in early trade. Futures are up versus fair value pre-market.