David Chojnacki S1F Market Technician
Despite mediocre GDP and Claims numbers, the Market moved out to the upside in the first half hour, bouncing off the lows of the last several sessions. The indices were unable to hold the initial strength and began to slide into the late morning hours. It was mostly sideways in the PM hours, with a late burst to the upside near the close. At the close, the DJIA gained 55 points, the S&P moved up 5.9 points, and the Nasdaq100 added 0.79%. Breadth was positive, 1.6 to1, on weak volume. RSI's moved up slightly, with the stronger Nasdaq100 approaching the 70 level. ROC(10's) were mixed with the DJIA remaining in negative territory and declining. TheNasdaq100 and S&P continue positive and advanced in the session. The indices managed to close positive after several consecutive negative sessions. The DJIA moved back above its 50D-SMA(15294). The S&P 20D-SMA crossed above its 50D-SMA. MACD's for the DJIA and S&P are declining and are close to crossing signal, on the recent weakness. The S&P traded above 1700, but was unable to hold that level at the close. The VIX rose 0.36% in the session to close at 14.06. The VIX advanced, contrary to the typical direction of an advancing market. The S&P near term support is now at 1688-85 and 1675. 1688 is key near term support. Upside resistance remains at 1700 and 1712. The Nasdaq100 now has support at 3225(a key level) and 3212. Near term resistance sets up at 3237 and 3248-50. The Nikkei was lower overnight and Europe is lower in early trade. Investors continue to focus on the FED and fiscal policies from Washington. Futures are somewhat lower versus fair value in pre-market.
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