David Chojnacki S1F Market Technician
After some weakness at the opening, an increase in the consumer confidence number set the stage for a reversal in the averages, which lasted into the final bell. The averages were moving up into the close and ended at their highs of the day. At the close, the DJIA added 21 points, the S&P was up 3.9 points, and the Nasdaq100 moved up 0.7%. Breadth was positive, 2 to 1, on above average volume. RSI's are now in the low 60's for all three major averages. ROC(10's) are positive and advanced in the session. The S&P made a new closing high and finished just above its all-time intra-day high. The Nasdaq100 closed at a new closing high and 9 points above its intra-day high. The DJIA and S&P did form a 'hanging man' in the session(a candlestick reversal signal). We will watch this in the next session. The DJIA joined the other major indices in seeing its MACD move above signal. The DJIA closed just 26 points below its all-time closing high. The VIX dropped 1.3% to 13.52, remaining at low levels. With the S&P moving to new highs it now sets its eye on 1600. Look for 1600 and 1612 to be the next near term resistance levels. For support we see 1597, 1593 and 1588 as near term support. The Nasdaq100 has bounced back to once again look like it wants to become the leader of the major indices. AAPL's recent snap-back has helped the Nasdaq100 move to new highs. Look for support at 2878, 2875 and 2864. Upside resistance can be found at 2888 and 2900. A huge number of economic reports today, and the Street will be concentrating on ADP numbers and the FOMC. Europe is mostly closed today for May day. U.S. Futures are flat to slightly higher.
Major Economic Reports Today
ADP Employment Change-8:15am ISM Index-10:00am Construction Spending-10:00am Crude Inv.-10:30am FOMC Rate Decision-2:15pm Auto/Trucks Sales-3:00pm
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