David Chojnacki S1F Market Technician
After a slow start the averages moved comfortably to the upside by late morning. A pullback near the close left the averages little changed. A little reversal in the indices strength, with the S&P and DJIA slightly positive, while the Nasdaq100 closed off 0.5%. Once again the S&P moved toward the 1220 level and met resistance. This appears to be a formidable area with several technical indicators currently near this price range providing resistance, including the 50D-SMA(1223) and the upper Bollinger Band(1229). The DJIA has also continued to trade within a range since August 5th. The closing prices of that range are 10719 and 11613. The DJIA also has its 50D-SMA(11636) and upper Bollinger Band(11668) right near the top of the recent
range. The Nasdaq100 continues to be the strongest of the indices with an RSI of 58 and holding above its recent range. Though it lost a few points in yesterday’s session it remains just above its 200D-SMA(2291). If the Nasdaq100 continues to be a leader it will pull the other averages out of the range and initiate a new ‘bull‘ move. If the S&P cannot get out of this consolidation with a move to the upside and falls through the 1120 level, we can possibly move down to the 1025 area in the S&P. Slight move to the upside in the VIX yesterday to close at 32.86. Volatility should be a key consideration in trading strategies. May get some words from the FED today which may move the Market. Early futures are mixed, giving little guidance to sentiment at the open.
Major Economic Reports TodayExisting Home Sales-10:00am Crude Inv.-10:30am FOMC Rate Decision-2:15pm
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