David Chojnacki S1F Market Technician
After quickly moving down at the open, the averages made a rapid reversal and began a slow methodical move to the upside. The averages traded in a narrow technical range once again, and at the final bell the DJIA and S&P made it into positive territory. The Nasdaq100 was held down again by AAPL and ended negative. At the close, the DJIA was up 27 points, the S&P added 1.6 points, and the Nasdaq100 dropped 12.7 points. Breadth was positive, 1.3 to 1, on below average volume. RSI's remain fairly steady in the mid 60's, with the Nasdaq100 lowering to 56. ROC(10)'s were down in the session, and went into negative territory for the Nasdaq100. The major indices traded in a narrow technical range, with the S&P closing at its recent high of 1472. The DJIA and S&P have now traded in a very narrow range for 9 sessions. Volume in this series has also been weak. The Nasdaq100 was the only index to close negative and again this was mostly because of the weakness in AAPL. AAPL was down for the third straight day and closed at 485. There is 3 year trend-line support near 475, however, below that level there is little support to 400. The S&P continues to lead the indices, closing at 1472, its recent high. This level is also acting as good resistance in several sessions now. Above 1472, we find resistance at 1475 and 1488. The S&P now has near term support at 1465 and 1450. The Nasdaq100 traded in a technical range and closed just below key support at 2725. 2725 and 2730 will now become resistance levels. 2730 is key, as it represents a 1 year-trend line. The Nasdaq100 now finds support at 2712 and 2709. The VIX added 0.22% to close at 13.55. The VIX remains at low levels. JPM and GS report earnings this morning, as it is a big week of earnings for the Financial sector. The European markets are lower in early trading. Futures are lower this morning versus fair value.
Major Economic Reports Today
CPI-8:30am Net Long Term TIC-9:00am Industrial Prod./Capacity Util.-9:15am NAHB Housing Market Index-10:00am Crude Inv. -10:30am Fed's Beige Book-2:00pm
ALL PRICES NOTED IN THIS PUBLICATION ARE AS OF THE CLOSE ON TRADING PRIOR TO TODAY'S DATE, UNLESS OTHERWISE INDICATED
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