Market Summary
David Chojnacki - Market Technician
The start of military action in Syria and a weak overseas market, precipitated falling equities at yesterday's open. Additional housing data that showed the economy remains weak kept the averages in negative territory all morning. As no buyers came in during the PM session, and a poor close, the major indices fell on the day. The S&P and DJIA had moderate losses, while the Nasdaq100 only gave up a few points. At the close, the DJIA was down 0.68%, the S&P was off 0.58%, and the Nasdaq100 slipped 9.6 points. Breadth was decidedly negative, 2.4 to 1, on average volume. RSI's slipped in the session, with the S&P falling below the 50 level. ROC(10's) declined in the session, with the DJIA and S&P falling into negative territory. We have now seen weakness in the last three straight sessions. The DJIA had its MACD fall below signal, joining the other two major indices. Near term technicals are deteriorating, as all three major indices are below their 20D moving average levels. As we have been noting for the last several weeks, internals continue to deteriorate. The S&P closed below 1985, which is key near term support. The Nasdaq100 closed at 4051, just 26 points from trend line support at 4025. IWM(small-caps) continue to lead to the downside, losing nearly 1% in yesterday's session. The VIX was up 9%, closing at 14.93, the highest level since early August. Near term support for the S&P is now at 1975-72 and 1962. Near term upside resistance is at 1985-91 and 2000. Near term support for the Nasdaq100 is now at 4025 and 4012. Near term upside resistance is now at 4075 and 4088. Europe is lower in early trade. We get more Housing data this morning(see above). U.S. Futures are higher this morning, as equities will try to reverse the last three sessions.
Major Economic Reports Today
New Home Sales-10:00am Crude Inv.-10:30am
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