David Chojnacki S1F Market Technician
The Market moved out to a strong start from the opening bell on strength in European markets. By late morning the indices were at new highs and breaking out to the upside. As the S&P neared its all-time intra-day high of 1576, sellers began to come in to the market and take some profits. The selling continued throughout the PM until the final 15 minutes when buyers jumped in and pushed the DJIA and S&P to new all-time closing highs. At the close, the DJIA was up 0.6%, the S&P added 0.5%, and the Nasdaq100 pushing up 0.8%. Breadth was slightly negative, on just below average volume. RSI's remain bullish with the DJIA approaching over-bought levels. ROC(10's) are positive for all major indices and advanced in the last session. The Nasdaq100 had its MACD move back above signal. Though the DJIA and S&P moved to new highs, the breadth was slightly negative and IWM dropped 0.6%. IWM tracks the Russell 2000, a basket of small caps. The Dow Transports also continued their pullback moving down 1.2%. The VIX slipped 5.8% to close at 12.78. The S&P now sees near term support at 1565,62, and 1556. Near term resistance now sets up as the intra-day all-time high of 1576 and 1588. The Nasdaq100 had a good session, closing above 2812 which has been formidable resistance. We will look for a hold of that level today. It is still about 1.5% below its 2012 September closing high of 2864. Near term support is now at 2812 and 2800. Resistance can be found at 2825 and 2837. Europe is slightly to the downside in early trading. We get a preview of employment from ADP and also ISM numbers this morning. Futures are flat to slightly higher versus fair value this morning.
Major Economic Reports Today
ADP Employment Change-8:15am ISM Services-10:00am Crude Inv.-10:30am
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