David Chojnacki - Market Technician
After some early weakness in the first hour, the indices reversed and moved into positive territory. They then spent most of the day in a narrow range, except for a brief pullback when a headline regarding a Russian move into Ukraine hit the newswires. The S&P and Nasdaq100 were able to regain equilibrium going into the close and managed a small gain. They managed to close at new highs. At the close, the DJIA added 15.3 points, the S&P was up just 0.10 of a point, and the Nasdaq100 moved up 1.5 points. Breadth was positive, 1.4 to 1, on weak volume. RSI's were up slightly with the Nasdaq100 at 72.5. ROC(10)'s declined for the second straight session, indicating the weakening momentum to the upside. MACD's remain positive for all three major indices. The Nasdaq100 was up for its eleventh straight session and set a new closing high. It remains slightly over-bought. The DJIA remains below its July highs and closed just 16 points below its closing high. The S&P with a very small gain, closed at 2000.12, a new high by 0.10 of a point. The Nasdaq100 and S&P developed 'Doji's' in the session. 4125 in the Nasdaq100 and 2012 in the S&P should provide short term formidable resistance. IWM(small-caps), was down in yesterday's session as it continues to lag the major indices. The VIX was up slightly in the session to finish at 11.78. Near term support for the S&P remains at1991 and 1988-85. Near term upside resistance continues at 2012 and 2025. The Nasdaq100 near term support remains at 4062 and 4050. Near term upside resistance is now at 4075 and 4088. European markets are lower on continuing tensions in Ukraine. Expect Ukraine to be in traders eyes today. Futures are lower in pre-market.
Major Economic Reports Today
Initial/Continuing Claims-8:30am GDP-8:30am Pending Home Sales-10:00am NatGas Inv.-10:30am
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