David Chojnacki S1F Market TechnicianAfter a brief pause in the prior session, the Market resumed its move to the top of the current trading channel. The major indices were up nearly 1 % on the day, with breadth positive, nearly 4 to 1, on below average volume. RSI’s remain in the upper 50’s and short term technicals continue to improve. While the S&P and DJIA remain above their 20 and 50 day moving averages, the averages continue to be inverted. The top of the trading range for the DJIA is 11613(close) with 1220 serving as the top of the range for the S&P. The S&P touched 1220 briefly in yesterday’s session, but quickly reverted towards 1208, which became a support level. The S&P closed just near 1208 and we look at that 1200-1208 area to provide support if we are going to make a
further upside move. 1208 is the Fibonacci (.38) retracement level of the last down leg and the S&P failed to close above. The DJIA closed above this Fibonacci level, which is 11485 for the index. Look for this to become support for the DJIA with 11613 and 11716 providing resistance on the upside. The Nasdaq100 continues to exhibit stronger short term technical strength, as it is above its Fibonacci (.618) retracement level(2288) and closed just a point below the top of the recent trading range(2308). Look for the Nasdaq100 to find support near 2244. Job claims report this morning may have some impact on the opening, as well as J.P. Morgan earning’s report. Futures in the early AM are pointing to lower open. A 4.8% drop in the VIX, but it remains above 30 at 31.26.
Major Economic Reports TodayInitial/Continuing Claims-8:30am Trade Balance-8:30am Crude Inv.-10:30am Treasury Budget-2:00pm
ALL PRICES NOTED IN THIS PUBLICATION ARE AS OF THE CLOSE ON TRADING PRIOR TO TODAY’S DATE, UNLESS OTHERWISE INDICATED
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