David Chojnacki S1F Market Technician
An open slightly to the downside, was met by buyers to bring prices nearly flat after the first hour. Prices then turned downward again, until mid-afternoon, when buyers stepped in again, but were unable to get the major indices into the black, except for the Nasdaq100. There was not much conviction to move the major averages in either direction. At the close, the DJIA slipped 32 points, the S&P was down 4.2 points, and the Nasdaq100 added 2.2 points. Breadth was negative, 1.7 to 1, on below average volume. RSI's were little changed and remain bullish. ROC(10's) advanced with the S&P moving back into positive territory. The DJIA continues to be the strongest index over the last few sessions. It is the only index of the big three without its MACD below signal. The S&P tried to test its recent closing high, but has remained below that level(1771.9) and key resistance at 1775. The DJIA and S&P developed 'doji's ' in the session. The Nasdaq100 closed slightly above its 20D-SMA of 3362. The VIX added 2.3% to finish at 12.82, continuing to remain relatively tame. The S&P near term support remains at 1762 and 1750-45. Important near term support is near 1725. Near term upside resistance continues at 1772-75(formidable) and 1788. 1775 area has provided resistance on several occasions. The Nasdaq100 near term support now sets up as 3362 and 3350. 3300 remains as key near term support. Near term upside resistance is 3375 and 3388. Little economic news today, but the new healthcare plan remains headline news. The Nikkei and European markets are down in early trade. Futures are slightly lower this morning versus fair value in pre-market trade.
Major Economic Reports Today
Export/Import Prices-8:30am Treasury Budget-2:00pm
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