Market Summary
David Chojnacki - Market Technician
With the situation in Ukraine worsening over the weekend and reports of additional weakening in the Chinese economy, the major indices gapped down at the open. The S&P was down 1% in the first 15 minutes, but buyers stepped in to move the indices back into positive territory by late morning. The major averages then traded in a narrow range for most of the PM and a last hour push to the upside left the indices in positive territory at the final bell. At the close, the DJIA was up 17.6 points, the S&P inched up 3.5 points, and the Nasdaq100 gained 0.49%. Breadth was slightly negative, on weak volume. RSI's gained little, but the Nasdaq100 internal strength is gaining parity with the other major indices. ROC(10)'s declined in the session, but remained in positive territory. All three major indices maintained their positive MACD. The DJIA and S&P developed a 'hanging man' in the session. They also remain within striking distance of their all-time highs, but once again were unable to penetrate. The Nasdaq100 closed above its 50% retracement level of 3586 and also the psychological 3600 milestone. It remains 10 points below its 50D-SMA of 3615 and below its 1 year trend-line of 3630. The VIX spiked up early in the session, but then pulled back to close down 2.9% to 13.29. Near term support for the S&P remains at 1875 and 1862-61. Near term upside resistance for the S&P continues at 1888-90 and 1897-1900. The Nasdaq100 near term support is now at 3600 and 3588. Near term upside resistance is now at 3612-17 and 3625. There looks to be near term strength, but indices are having trouble getting through previous highs. Overseas markets are mixed this morning. Futures are slightly higher pre-market this morning.
Major Economic Reports Today
Trade Balance-8:30am
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