David Chojnacki S1F Market Technician
After opening to the upside, the Market quickly met resistance at predicted technical levels and began trading sideways. A flat market for most of the session, found some buyers in the last hour, who pushed the DJIA and S&P to new recent highs. The S&P fell just short of reaching its all- time closing high of 1565. At the close, the DJIA and S&P were up a moderate 0.7%, and the Nasdaq100 gained 0.6%. Breadth was decidedly positive, 2.3 to 1, on weak volume. Once again, we saw extremely low volume on an 'up' day, even though breadth was good. RSI's had a nice move to the upside, as they remain bullish. ROC(10's) advanced and the major indices moved back into positive territory. MACD's remain below signal for all three major indices. The major indices have been moving sideways for almost three weeks now and the S&P is having difficulty moving to new all-time highs. The Nasdaq100 has had trouble getting through 2812, which has become a formidable resistance level. The DJIA is the only major index trading at a new all-time high. The Transports, which had been at all-time highs, have now pulled back 1.5%. The fact that other major indices are not confirming the breakout in the DJIA is a concern and a caution flag. The VIX lost 7% to 12.77, keeping volatility low. The S&P now sees near term resistance at 1563-65 and 1576. Support, near term, will set up at 1556 and 1550. The Nasdaq100 continues to meet formidable resistance at the 2812 level. There are additional headwinds at 2825. Support now sets up as 2800 and 2788. Europe is down moderately, in early trade, as Cyprus still hangs out there as a thorn in the ECB's side. Futures are considerably lower in the U.S., as the Market looks to open to the downside.
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