David Chojnacki S1F Market Technician
A good open to the upside managed to hold throughout the session to finish with significant gains at the close. The three major indices were up between 2.2 and 2.8% for the day. Breadth was decidedly positive, 7 to 1, however, volume was about half the average. All three major indices closed above their 20D-SMA in the session and closed above a recent high. Near term technicals continue to improve as we move off the recent August lows. RSI’s are moving into the low 50’s, further confirming the recent strength. The DJIA needs to hold above 11482 and 11485(Fibonacci level) to continue the move to the upside. The S&P closed above the 1200 level and 38% retracement level of 1208. We would like to see it hold that level to continue the move to
1225, before it meets formidable resistance. Above 1225 there is resistance at 1236 and 1250. The Nasdaq100 closed a gap and closed above the 2200 and 2212-14 levels, which indicates some decent upward momentum. Expect to see some resistance at the 2244 area. Consumer Confidence and FOMC Minutes today may be Market movers today. Another big dip of 9.3% in the VIX to close at 32.2. This is still a relatively high level which leaves open the possibility of volatile swings. Futures are lower this morning, indicating some weakness at the open.
Major Economic Reports TodayCase-Shiller Index-9:00am Consumer Confidence-10:00am FOMC Minutes-2:00pm
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