David Chojnacki S1F Market Technician
A bit of a mixed market again yesterday, with weakness in the DJIA, and strength in the Nasdaq100 and S&P. The indices traded in a narrow range yesterday, with the S&P in a 6 point range. The weakness in the DJIA was primarily attributed to IBM's poor earnings report. IBM is expected to additionally allocate 1 Billion for more cuts this year. Meanwhile the Nasdaq100 continued to march higher with new highs on the day. At the close, the DJIA was down 41 points, the S&P moved up 1.6 points, and the Nasdaq100 added 10 points. Breadth was positive, 2 to 1, on below average volume. RSI's were mixed in the session, and remain in bullish territory. ROC(10's) moved to the upside across the board, with the DJIA the only in one in negative territory. The Nasdaq100 had another strong session and made new highs. It is also the only major index with a positive MACD. The $DJT(Dow Transports) and IWM(small caps) also made new highs during the session. The DJIA closed once again below its 20D-SMA(16434). The S&P closed the session developing a 'Doji'. Near term strength continues and we expect the S&P and DJIA to eventually test the December highs. The VIX was nearly flat, off just 0.03 of a point to 12.84. The 10 year yield moved up to 2.86%. The S&P near term support remains at 1837-40 and 1825. Near term upside resistance for the S&P is now at1850 and 1862. The Nasdaq100 now has near term support at 3625 and3612. Near term upside resistance is now 3637 and 3650. The Nikkei was lower over-night. Europe is mostly lower in early trade. Some key economic reports today(see above) and more earnings reports. Futures are pointing lower this morning versus far value.
Major Economic Reports Today
Initial/Continuing Claims-8:30am FHFA Housing Price Index-9:00am Existing Home Sales-10:00am Leading Ind.-10:00am Natgas Inv.-10:30am Crude Inv.-11:00am
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