Market Summary
David Chojnacki, Market Technician
Global economic weakness and poor Retail Sales numbers had equities gapping down at the opening bell on Friday. Prices were down nearly 1% in the first five minutes. There was little dip buying during the day and the major averages fell throughout the session. Volatility was spiking to the upside during the day as fear came back into the market. By the final bell, the major indices were down significantly in the session. At the close on Friday, the DJIA was down 1.7%, the S&P 1.9%, and the NDX dropped 2.2%. Breadth was decidedly negative, 6.7 to 1, on above average volume. RSI's were lower with the S&P moving into the 30's. For the week, the major indices registered rather large losses: DJIA down 3.2% the S&P and NDX gave up 3.7%. The VIX spiked 26.1% to finish at 24.39. It was up a whopping 54% for the week. The Energy sector continues to be the weakest with oil hitting new lows. I/T continues to be the strongest sector. Falling commodities are a drag on Emerging markets.
MAJOR INDICES Short term support and resistance level | |||||
| DJIA close 17265 | SP500 close 2012 | N100 close 4537 | |||
17210 | 17325 | 2012 | 2021 | 4525 | 4550 |
17150 | 17431 | 2000 | 2025 | 4500 | 4571 |
17000 | 17563 | 1995 | 2037 | 4479 | 4575 |
16887 | 17651 | 1988 | 2050 | 4476 | 4600 |
16875 | 17750 | 1975 | 2062 | 4461 | 4625 |
16500 | 17918 | 1968 | 2075 | 4450 | 4645 |
1950 | 2100 | 4425 | 4650 | ||
1925 | 2109 | 4401 | 4675 | ||
1912 | 2112 | 4700 | |||
Major Economic Reports Today
No reports scheduled
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TODAY'S DATE, UNLESS OTHERWISE INDICATED
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Trading Trends
Big move to the downside last week kept the averages from resuming their long term upside trend. The NDX and S&P are now both below their 1 yr. trend-line support of 4600 and 2105, respectively. Short term technicals weakened considerably last week and bias is moving to the downside. We are watching 50% retracement levels of 4401 and 1995, for the NDX and SPX, for critical short term support. The SPX is only a few points away. Near term bias will continue to the downside, as we broke below the range that we have traded in since the middle of November. Below 2020 for the SPX keeps bias to the downside. Everyone's radar on the FOMC this week, as we anticipate the first rate hike. Europe is mixed in early trade and US Futures are pointing lower before the bell.