David Chojnacki S1F Market Technician
Once again, the Market got off to a good start, on word that support was waning for the go-it alone attack on Syria. Good sales numbers from the auto companies helped to propel the averages to further gains. The Nasdaq100 was leading, helped by good gains in AAPL. There was a slow drift to the downside during the PM, but the major indices held most of their gains into the final bell. At the close, the DJIA added 0.65%, the S&P moved up 0.8%, and the Nasdaq100 gained 1%. Breadth was decidedly positive, 2.4 to 1, on above average volume. RSI's moved up significantly in the session. ROC(10)'s advanced across the board, with the DJIA and S&P moving back into positive territory. The Nasdaq100 met resistance at 3125, which is the top of the recent trade range. It did close above its 20D-SMA(3100), for the first time in six sessions. Despite moving to the upside, the S&P had its 20D-SMA cross below its 50D-SMA as a result of the recent weakness. The S&P remains in the trading range(1627-1669) it has been in for the last 13 sessions. It needs to move above 1675 to regain its short term upside bias. The VIX lost 4.3% to close at 15.88. The VIX appears to not reflect the geopolitical 'event risk'. S&P near term support is now at 1650 and 1637. 1625 remains key near term support. The S&P remains in a narrow range. Upside resistance is now at 1660-63 and 1675. The Nasdaq100 now has near term support at 3112 and 3100. Near term resistance sets up at 3125 and 3137-43. The Nikkei and European markets are flat in early trade. A plethora of economic reports today(see above). The Employment Report is tomorrow. Syria remains in investors eyes. Futures are mixed versus fair value before the open.
Major Economic Reports Today
ADP Employment Change-8:15am Initial/Continuing Claims-8:30am Prod/Unit labor Costs-8:30am Factory Orders-10:00am ISM Services-10:00am NatGas Inv.-10:30 Crude Inv.-11:00am
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