David Chojnacki S1F Market Technician
Good economic numbers were bad for the open yesterday. Housing numbers later reversed the market briefly, but then sold-off going into the Fed Beige statement. The major indices got a bounce from the report and moved to the upside for the remainder of the session. The averages finished mixed, with the Nasdaq100 the only index managing to get in the black at the final bell. At the close, the DJIA was down 24.8 points, the S&P gave up 2.3 points, and the Nasdaq100 gaining 3.6 points. Breadth was negative, 1.7 to 1, on an increase in volume. We have seen the volumes tick up in the last several down sessions. RSI's were only slightly changed, with the Nasdaq100 remaining the strongest at 69.2. ROC(10's) rose in the session, with the DJIA the only major index remaining in negative territory. The DJIA and S&P traded below their 20D-SMA's in the session and the DJIA closed below that level. The Nasdaq100 is the only index of the big three with a positive MACD. The near term weakness continues, however, we will see if yesterday's late day turnaround can carry into today's opening. The VIX finished up 1% to 14.70, for the 7th straight day to the upside. As noted in yesterday's report, the VIX now sits above its 50 and 200D averages. Near term support for the S&P remains at 1788-1786 and 1775. A drop below these levels and it may test 1775 and 1750-49. Upside near term resistance sets up at 1800-04 and 1812. The Nasdaq100 near term support remains at 3475 and 3462. Near term upside resistance is now 3488 and 3500. The Nikkei was considerably lower over-night. Europe is mixed and hardly changed in early trade. Some more key economic numbers this morning(see above). Futures are mixed this morning versus fair value.
Major Economic Reports Today
Initial/Continuing Claims-8:30am GDP-8:30am Factory Orders-10:00am Natgas Inv.-10:30am
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