David Chojnacki S1F Market Technician
The indices followed through on the prior session's strength and moved to the upside from the opening bell. The Market traded in a narrow range through most of the session and finished mixed at the close. The DJIA and S&P closed at new highs, while the Nasdaq100 was off slightly due to weakness in Techs. At the close, the DJIA moved up 69 points, the S&P added 5.6 points, and the Nasdaq100 slipped 0.14 of a point. RSI's are in the 60's, with the DJIA at 71.9 and approaching over-bought territory. ROC(10's) were mixed, with the DJIA advancing and the Nasdaq100 and S&P declining. MACD's remain above signal. Most of the weakness in the Nasdaq100 was attributed to the downgrade in MSFT, and future PC sales projections. Techs were weak across the board throughout the session. Yesterday's follow through in the DJIA and S&P on an increase in volume was a positive step in confirming the breakout. There was some weakness in the Transports, however, the Financials, as measured by the XLF, were up 0.24%. It looked like the Nasdaq100 wanted to join the DJIA and S&P moving to new highs, but yesterday's pullback looks like that may have been halted, at least temporarily. The VIX dropped 0.9% to 12.24, keeping volatility at low levels. The S&P now has near term support at 1588 and 1575-76. Upside resistance can now be found at 1600 and 1612. The Nasdaq100 met resistance just below its September 2012 closing high of 2864. Near term resistance can be found at 2864 and 2878(Sept. 2012 intra-day high). Support sets up at 2850 and 2837. Important numbers at 8:30 this morning(see above) and some bank earnings. Europe is moderately lower this morning. Futures are lower versus far value.
Major Economic Reports Today
Retail Sales-8:30am PPI-8:30am Mich Sentiment-9:55am Business Inv.-10:00am
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