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Today'sTechnical Outlook - 1/11/2013

|Includes: IWM, Financial Select Sector SPDR ETF (XLF)

Market Summary

David Chojnacki S1F Market Technician

The Market moved to the upside at the open and the S&P was quickly trading at new highs. A pull back after the first hour, had the S&P back below 1465, where it straddled both sides of that level for most of the session. A push to the upside, in the last hour and a half, left the indices with moderate gains and the S&P at a new 5 year closing high of 1472. At the close, the DJIA and Nasdaq100 were up 0.6%, and the S&P added 0.76%. Breadth was positive, 2 to 1, on average volume. RSI's moved into the 60's, with the S&P at 64.6. ROC(10's) are positive and advanced in the session. MACD's continue above signal. The Market showed some strength in the session, with the S&P at a new closing high, the DJIA moving above its recent high and volume increasing. The strong technicals continue to favor an upside bias with the DJIA only 140 points from moving to a 5 year high. The Nasdaq100 is lagging the other two major indices in that it needs to move over 4.2% to get into new high territory. This is due partly to the recent weakness in AAPL , which is a large part of the index. We can see the Market strength in other sectors such as Financials, where the XLF is at a two year high and the IWM (Russell 2000) which is at a five year high. With the S&P closing above 1465, we see the next resistance at 1475 and 1488. Support for the S&P now sits at 1465 and 1450. The Nasdaq100 met resistance in the session just below 2750, which is the beginning of a congestion resistance area. The congestion area is between 2750 and 2800. The Nasdaq100 finds support at 2734 and 2725. The VIX was off 2.3% to close at 13.49. The VIX is only a few pennies away from being at 5 year lows. The last time the VIX was at these levels the S&P moved sideways for an extended period. Investors will continue to focus on earnings reports and action in the bond market. European markets are mixed in early trading. Futures are off slightly versus fair value.

Major Economic Reports Today

Export/Import Prices-8:30am Trade Balance-8:30am Treasury Budget-2:00pm


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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.