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Today's Technical Outlook -1/24/2014

Market Summary

David Chojnacki S1F Market Technician

Weakness overseas, especially in China, lead to a sell-off at the opening bell. This time all indices retreated in tandem, with the DJIA being hit the hardest. The selling lasted till 2PM, when buyers stepped in to lift the indices off their lows of the session. The buying lasted into the final bell. Volume picked up on the selling. At the close, the DJIA was off 1%, the S&P lost 0.89%, and the Nasdaq100 slipped 0.38%. Breadth was negative, 2.1 to 1, on above average volume. RSI's were lower in the session, with the DJIA moving below 50. ROC(10's) were mixed in the session with the Nasdaq100 moving to the upside. The Nasdaq100 remains the only index of the big three with its MACD in positive territory. It did trade below 3600 in the session, but found support at the 3588 level. The Nasdsaq100 also developed a 'Doji' in the session. The DJIA weakened further in the session taking out its 50D-SMA(16152) and beginning to weaken short term technicals. The DJIA remains the weakest of the three major indices. The S&P closed below its 20D-SMA(1838), but managed to close above the 1825 support level. More important near term support is at 1812. The VIX spiked 7.2% to close at 13.77. It traded as high as 14.66 in the session, with its MACD crossing above signal. The 10 year yield moved down to 2.78%. The S&P near term support is now at 1825 and 1812. Near term upside resistance for the S&P is now at1837-40 and 1850. The Nasdaq100 now has near term support at 3600 and3588. Near term upside resistance is now 3625 and 3637. The Nikkei was lower over-night. Europe is mostly lower in early trade. No key economic reports today, but earnings continue. Futures are significantly lower this morning versus far value.

Major Economic Reports Today

No reports scheduled

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