David Chojnacki S1F Market Technician
After opening slightly to the upside, the Market quickly reversed and headed into negative territory. It only slipped a few points and when nearing yesterday's lows caught a bid and moved into the black. The S&P couldn't hold above 1700, moved back into the red and held there into the close. At the close, the DJIA lost 0.4%, the S&P gave up 4.6 points, and the Nasdaq100 dropped 0.3%. Breadth was fairly even, on below average volume. RSI's slipped, with the DJIA moving just below 50 to 49.8. RSI's remain in bullish territory. ROC(10's) declined for the DJIA and Nasdaq100, with the DJIA moving into the negative. The S&P advanced in the session. The S&P and DJIA are now down for five straight sessions, with the S&P off 1.9% from last week's high. The Nasdaq100 is now down for 4 straight sessions. The DJIA closed just below its 50D-SMA(15297) exhibiting some of the technical weakness developing in the indices. The S&P had its 20D move up to its 50D(both near 1679) and is about to cross above. This is a latent signal from the earlier leg up to new highs. The S&P traded lower intra-day than the prior session. The VIX was little changed, down 0.5% to close at 14.01. After 5 straight days to the downside we may see a little bounce today. Futures are pointing to a positive open. The S&P near term support is now at 1688-85 and 1675. A drop below 1688 and we may begin destroying some short term technicals. Upside resistance remains at 1700 and 1712. The Nasdaq100 now has support at 3200 and 3188. Near term resistance sets up at 3212 and 3225. The Nikkei was higher overnight and Europe is mixed in early trade. Some key economic reports today(see above). Wall Street seems to be ignoring the economic reports and focusing on just the FED.
Major Economic Reports Today
Initial/Continuing Claims-8:30am GDP-8:30am Pending Home Sales-10:00am NatGas Inv.-10:30am
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