David Chojnacki S1F Market Technician
Weak Housing numbers yesterday morning and a transcript of Bernanke's speech set the tone for the opening. Bernanke's speech indicated the easy monetary policy would continue as necessary, and Housing numbers indicated it would be necessary. The Market opened to the upside, but there was not much strength to the move. The remainder of the session was mostly sideways and there was little interest from traders. At the close, the DJIA was up 18.6 points, the S&P added 4.6 points, and the Nasdaq100 up 7.8 points. Breadth was positive, 2 to 1, on below average volume. RSI's edged up slightly, remaining in the 60's, with the Nasdaq100 at 71.3. The Nasdaq100 is now moving into over-bought territory. ROC(10)'s remain positive, advancing for the S&P, and declining for the Nasdaq100 and DJIA. Only the Nasdaq100 made a new high in the session. The DJIA once again met resistance at the 15500 level. The indices are developing a 'bull handle' , suggesting another leg to the upside. The VIX lost 4.4% in the session to close at 13.78, keeping volatility low. The S&P near term support remains at 1675 and 1669. Upside resistance is at 1687-88 and 1700. The Nasdaq100 made a new high despite the small gain. Near term support is now 3075 and 3053-50. Look for near term resistance at 3088 and 3100. Bernanke speaks again today, this time to the Senate. No surprises are expected. This morning we get another look at the employment situation and also leading indicators. Earnings reports have been mixed so far, with Financials reporting good bottom lines. Overseas markets were mixed in early trade. Futures are mixed versus fair value in the pre-market.
Major Economic Reports Today
Initial/Continuing Claims-8:30am Philly Fed-10:00am Leading Indicators-10:00am NatGas Inv.-10:30am
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