David Chojnacki S1F Market Technician
The Market gave its response to the government shutdown, by not putting much weight into the action. The indices opened to the upside and climbed throughout the morning hours. By early afternoon, the averages began to give up some of the gain, but a last minute surge before the close put the major indices near their highs of the day. The Nasdaq100 closed at a new 13 year high. At the close, the DJIA gained 0.41%, the S&P was up 0.8%, and the Nasdaq100 gaining 1%. Breadth was decidedly positive, 2.7 to1, on below average volume. RSI's moved to the upside, with the Nasdaq100 closing at 67.9. ROC(10's) declined across the board, with only the Nasdaq100 remaining in positive territory. As noted above, the Nasdaq100 closed at a new 13 year high, and continues to be the strongest of the major indices. The DJIA saw its 20D-SMA cross above its 50D-SMA, and despite yesterday's good gain, remains the weakest of the three major indices. The DJIA remains below the 50% retracement level(15226). The DJIA and S&P remain with their MACD below signal. The S&P closed above its 20D-SMA and 38% retracement level of 1689. The VIX pulled back 6.3% to close at 15.54. Above 1689 the near term bias is to the upside for the S&P. The S&P near term support is now at 1688-89 and 1677-75. There is key short term support at 1655. Near term upside resistance is at 1700 and 1712. The Nasdaq100 now has near term support at 3250 and 3225. Near term resistance sets up at 3262 and 3275. With no government employment numbers expected on Friday, today's ADP numbers will draw more attention. Overseas markets are weak in early trade. ECB leaves rates unchanged. Futures are down moderately versus fair value, in pre-market trade.
Major Economic Reports Today
ADP Employment Change-8:15am Crude Inventories-10:30am
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