David Chojnacki S1F Market Technician
Taking a clue from Europe bourses, the market got off to a good start on Monday and maintained its strength into the close. The major indices posted moderate gains and ended the session near their highs of the day. Once again volume was missing in the rally. At the close, the DJIA added 53 points, the S&P up 0.73%, and the Nasdaq100 gained 0.66%. Breadth was positive, 2.1 to 1, on below average volume. RSI's were up across the board, with the S&P beginning to move into over-bought territory. ROC(10's) remained in positive territory, but declined in the session. After moving toward the 1525 level for four straight sessions and pulling back, the S&P had the strength to move through and close above that level. The S&P closed at a new five year high(1530), and was joined by the DJIA, which finished at 14035. The Nasdaq100 participated in the rally closing above 2775 to 2782, its highest close since Oct. 8, 2012. The DJIA closed at 14035, just a few points below the top of the recent range of 13860 to 14038, which it has been in since January 28th. The S&P managed to close above 1525, and we expect more upside if it can hold that level. There is resistance in the 1525 to 1540 area, so we may see some sideways action here before moving to test the all-time highs. The S&P has support now at 1525 and 1512. Upside resistance is now 1537-40 and 1550. The Nasdaq100 pushed through 2775 and now finds resistance at 2788 and 2800. Support can now be found at 2775 and 2762. The XLF and IWM made new highs again, closing at 17.93 and 92.55 respectively. The VIX lost 1.2% to close at 12.31. Europe is mixed in early trade. Futures are slightly lower early this morning versus fair value. Key numbers at 8:30am.
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