David Chojnacki S1F Market TechnicianAfter two sessions of large gains, the Market was much more sanguine and traded in a narrow range. The trading was much lighter than the previous session and the indices closed only slightly to the downside. At the close, the DJIA was off 21 points, the S&P gave up just 3 points, and the Nasdaq100 rising 0.5%. Breadth was only slightly positive, on below average volume. RSI's remained nearly steady, in the low 60's, and ROC(10's) were positive and rising. MACD's remained above signal. The slow day was an indication of a Market taking a breather and exhibiting consolidation. During the session the S&P and Nasdaq100 hit key resistance levels and pulled back. The indices maintained the recent technical strength gained in the prior two sessions and near term and short term bias remains to the upside. The big three indices also held above their recent December highs. The Nasdaq100 met resistance in the session at 2750. 2750 is the beginning of a congestion area, which runs to 2800, that will present some resistance. The high established back in September of 2012 was 2864. The Nasdaq100 has support at 2725 and 2700. The S&P met resistance intra-day at the September closing high of 1465 and pulled back to close 6 points below. Near term 1465 and 1475 will provide resistance. Support continues to set up at 1450 and 1435. The XLF(Financials ETF) and IWM(Russell 2000) moved to new 52 week highs in the prior session and although they lost a few points yesterday, maintained the new ground. The VIX which had a few wild sessions was much calmer yesterday, moving down 0.8% to close at 14.56. The Market telling us again that the volatility is out of the market. Key economic reports today, surrounding around the Employment report. The report will still be skewed by some leftover impact from Sandy and the holiday part-time hiring. European markets are mostly lower this morning. Futures are mixed early morning versus fair value, but should be impacted by the employment report.
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Major Economic Reports Today
Employment Report-8:30am Factory Orders-10:00am ISM Services-10:00am NatGas-10:30am Crude Inv.-11:00am