David Chojnacki S1F Market Technician
The Market sold off through the morning session, on what has become typical of Monday’s, low volume. The averages caught a bid in the PM and closed to finish with small to moderate gains. The three major indices were up between 0.6 and 0.7%. Breadth was barely positive, 1.2 to 1, on very weak volume. RSI’s are in the mid to upper 50’s and ROC(10)’s for the three major averages are positive and rising. Near and short term technicals continue with an upside bias. The VIX lost 1% in the session and once again fell just below 30, to close at 29.85. This marks four sessions in a row without a large spike in the index, and perhaps some diminishing of volatility. The DJIA has maintained its close above the 200D-SMA(11975) and we look for it to provide near term support. Below here
there is support at 11958 and 11722. We see resistance for the DJIA at 12125 and 12231. The S&P met resistance at its 150D-SMA(1260) and closed just near that level. There is also some resistance at 1263 and at its 200D-SMA(1273). Look to find support near 1236 and 1225. The Nasdaq100 closed just 1% below its recent high and just over 2% below its multi-year high set in July of this year. Look to find support at 2350 and 2340. Resistance on the upside is 2375 and 2401. Further reduction of volatility and an increase of volume on up days, would add conviction to the testing of the highs established earlier this year. Early futures are pointing to a positive open.
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