Street One Fina...'s  Instablog

Market Summary

David Chojnacki S1F Market Technician

A weak open, as news from Europe and Spain dampened last week's rally. We reached the low of the session near 2:45pm and then buyers took us off the lows going into the close. At the close, the DJIA was down 14.6 points, the S&P losing 5.4 points, and the Nasdaq100 giving up 17.6 points. Breadth was negative, 1.6 to 1, with below average volume. While near and short term technicals improved last week, there was no follow through yesterday. We traded in a technical range with RSI's dropping slightly and ROC(10's) declining. The DJIA 20D-SMA dropped below its 50D-SMA, not an alarming note, since we had a good bit of sideways action recently. The leader since the 2009 bottom, the Nasdaq100, however, remains with its MACD below signal and this does need to be monitored. We had short term bias turn to the upside after last week's rally, but without a follow through this week we can see technicals weaken once again. The bottom-line, it is too early to jump all in. The DJIA now has support near 13125 and 13042. Holding above 13125 keeps the bias to the upside. Resistance to the upside is now 13250 and 13264. Above 13264, we would be breaking out to new recent highs. The S&P held a key level closing at 1397. We find support here(1397) and at 1388. We now see resistance on the upside at 1412 and 1419(recent high). The Nasdaq100 was the weakest index on the day, influenced by a falling AAPL. It did trade in a narrow range and right near technical levels. 2725 is a key support level for the Nasdaq100, and it closed just below. Support lies at 2716 and 2712. Resistance on the upside is 2725 and 2750. The VIX closed up 5% to 17.15. Early Futures are slightly higher versus fair value.

Major Economic Reports Today

ISM Index-10:00am Construction Spending-10:00am Auto /Truck Sales-2:00pm

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