David Chojnacki S1F Market Technician
The Market went into a slow slide from the opening bell into the noon hour. In the PM, the indices reversed and made a desperate move to get positive going into the bell. At the bell, the Nasdaq100 made it into the black, while the DJIA and S&P fell just short. At the close, the DJIA shed 42 points, the S&P slipped 2.7 points, and the Nasdaq100 added just 0.15 of a point. Breadth was negative, 1.5 to 1, on below average volume. RSI's slipped a bit, and ROC(10's) were lower for the DJIA and Nasdaq100, but advanced for the S&P. The indices once again traded in a narrow range and the DJIA joined the other two major indices by having its MACD drop below signal. We also had the DJIA and S&P developing a 'hanging man' in the session, which is an indicator of a near term top. The S&P found resistance again at 1512, but managed to close above 1500, after falling below during the session. The Nasdaq100 traded below 2725, but at the close ended at 2746, just below the 2750 resistance area. The Nasdaq100 closed above its 20D-SMA(2741) and was the only major index to finish positive. The near term support sets up as 2741 and 2725. Near term resistance is now 2750 and 2762. The S&P closed at 1509 and once again 1512 will be formidable resistance. If we get above that level, 1525 will be next point of resistance. Support on the downside is 1500 and 1494. A break below 1494 and we may test the 1475 level. The VIX added .09 of a point to close at 13.50. It remains near 5 year lows. European markets are up, in early morning trading. Futures are flat early this morning versus fair value.
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