David Chojnacki - Market Technician
The major indices gapped up at the open to start the week on a positive note. The averages quickly jumped to moderate gains in the first hour of trading and held those gains into the PM. Some of the momentum and small cap stocks were recovering from their recent pullback. The final hour saw the indices get a push to the upside giving the indices moderate to significant gains on the day. At the close, the DJIA gained 0.68%, the S&P was up 0.97%, and the Nasdaq100, the big winner, up 1.6%. Breadth was decidedly positive 3.5 to 1, on below average volume. RSI's moved to the upside, with the Nasdaq100 moving into the 50's and the DJIA and S&P into the 60's. ROC(10)'s advanced in the session, and remain in positive territory. The DJIA moved to new highs: 16704-intra-day and 16695 as a closing high. The strongest mover was the Nasdaq100, which has recently lagged the other major indices. It moved above its 20D-SMA(3558) and closed above its 50% retracement level of 3586. This makes its near term bias positive, however, it remains below its one year trend-line support of 3660 and 125 and points from its early March closing high of 3727. The S&P closed at a new high of 1896 and tied its recent intra-day high of 1897. Its MACD crossed back above signal. The Dow Transports also moved to new highs. IWM(small-caps) was up 2.2% in the session. The VIX dropped 3.8% to 12.92. Near term support for the S&P is now at 1888-90 and 1875. Near term upside resistance for the S&P is now at 1900 and 1912. The Nasdaq100 near term support is now at 3600 and 3588-86. Near term upside resistance is now at 3620-25 and 3637. The Nikkei was up nearly 2% over-night and Europe is slightly higher in early trade. Futures are higher before the open.
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