David Chojnacki S1F Market Technician
The Market slid down in yesterday’s session to move the DJIA and S&P back within their 11 week trading range. The DJIA was down 0.6%, the S&P off 1.2%, with the biggest loser the Nasdaq100, down 2%. Breadth was negative, 2.5 to 1, on average volume. The prior session made an attempt to break out of the current trading range, when yesterday’s session moved the S&P and DJIA right back inside. The S&P did hold the Fibonacci(.38) retracement level of 1208 and this is key for any resumption of an upside move. Similar level for the DJIA is 11485, which was also held in yesterday’s session. We continue within the trading range and until we reach a confirmed breakout in either direction, trading strategies remain the same. The Nasdaq100, which is short term stronger
than the other major indices, ran into some problems on Wednesday when Apple disappointed with its earnings. The Nasdaq100 still remains above its Fibonacci(.618) level(2288) and held the 2300 level at the close. Short term resistance for the Nasdaq100 remains at 2375. For the S&P, resistance continues at the 1220-1236 area. The DJIA finds short term resistance at 11722. We continue in this consolidation pattern for 11 weeks. The VIX, which temporarily broke the 30 level, gained 9.1% yesterday and now is back at 34.4. Economic reports, earnings, and options expiration, will make for some interesting trading in the last two days of the week. Futures early this morning are up just slightly versus fair value.
Major Economic Reports TodayInitial/Continuing Claims-8:30am Existing Home Sales-10:00am Phila Fed-10:00am Leading Indicators-10:00am
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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