David Chojnacki S1F Market Technician
With not much to move the markets to start the week, the averages floated lower at the open. By 10 AM a good ISM number gave the averages a boost. There was not much momentum to push the indices higher, so they remained in a narrow range for most of the remainder of the session. At the close, the DJIA lost 46 points, the S&P slipped 2.5 points, and the Nasdaq100 edged down 0.33 of a point. Breadth was negative, 1.5 to 1, on weak volume. RSI's slipped in the session, but remain bullish. ROC(10)'s were mixed and remained in positive territory. The DJIA had its MACD slip below signal in the session. The DJIA and S&P developed 'hanging man's in the session. The S&P is bouncing up against a 5 year resistance, top of channel, near 1708-1712. The indices remain near their highs and bias remains to the upside, though we are meeting a little resistance at these levels. The IWM(Russell small cap) was up only slightly, but made another new high. The VIX was down 1.1% to 11.84. It is very close to the March closing low of 11.30 and intra-day low of 11.05. A break below 11.05 and we have to go back to February of 2007 to see numbers that low. The S&P near term support now sets up as 1700-1692 and 1688. Upside resistance is at 1708-12 and 1725. A break through the 1708-1712 area and it should test the 1741-1750 level. The Nasdaq100 now has near term support at 3137 and 3125. Near term resistance sets up at 3150 and 3162. Not much economic news today. The Nikkei was up overnight, with the European bourses mixed in early trade. Futures are slightly lower versus fair value in the pre-market.
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