Market Summary
David Chojnacki - Market Technician
After some early morning strength, the major indices tested technical levels and began to meet some selling. The major averages took a decided turn to the downside after the close in Europe and maintained that momentum into the close. Bio-techs were leading the way to the downside and contributing to the weakness in the NDX. By the final bell the losses were minor, but enough to pull prices below last week's highs. At the close, the DJIA fell 42 points, the S&P was down 8.7 points, and the NDX lost 11.7 points. Breadth was negative, 2 to 1, on below average volume. RSI's moved down slightly, with the strongest, the NDX at 64.5. ROC(10's) advanced in the session and remained in positive territory. MACD's remain above signal. The NDX and S&P had their 20D-SMA's cross above their 50D-SMA's. Both the indices pulled back from their new highs of last week. All three major indices developed negative candlesticks in the session, perhaps signaling additional near term weakness. The S&P closed below the 2012 support level and we now look for it to hold 2088-90 in order to maintain the upside momentum. The DJIA and Dow Transports have yet to make new highs and confirm the S&P and NDX. The IWM(small-cap Russell) which was weak last week, continued that downside momentum, closing off 1.1% to 124.47. After 5 straight downside sessions, the VIX moved up 6.7% to finish at 13.12. The strongest sector on the day was Materials and the weakest, Healthcare. Near term support for the S&P is now at 2100 and 2088-90. Upside resistance near term is at 2112 and 2117. The NDX near term support is now at 4500 and 4475. Upside resistance is at 4550 and 4575-80. AAPL posted a strong earnings report both on the top and bottom line. It is helping the NDX futures to be positive this morning. Europe is considerably lower in early trade, as China denies QE and Greece problems remain. Futures are lower except for the NDX, which is up slightly.
Major Economic Reports Today
Case-Shiller 20-city Index- 9:00am Consumer Confidence-10:00am
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