David Chojnacki S1F Market Technician
After a big move to the upside in the prior session, the indices digested some of those gains and were mostly flat on the day. The Nasdaq100 a bit of an exception, losing 1.4% on the day. The DJIA finished up 4 points and the S&P up 2.4 points. Breadth was positive 1.5 to 1, on low volume once again. RSI’s for the DJIA and S&P are back in the mid 50’s, and ROC(10)’s are positive and rising. For the Nasdaq100 the RSI is at 47, with the ROC(10) negative, but rising. The DJIA remains the only index above the 200D-SMA, while the Nasdaq100 dropped below its 20D-SMA in yesterday’s session. We mentioned in yesterday’s write-up of the convergence of moving averages and the potential for the indices to whipsaw on either side. This involves careful trading until we
get some settlement. The S&P remains above the 1220-25 level and held the 1236 retracement level in yesterday’s session, suggesting that we still see some upside bias in the short term. Look for these levels to provide support and resistance to set up at 1250, 1261, and 1285. The DJIA will see resistance at the 12125 and again at 12231. Support is at 12000 and 11958. The Nasdaq100 which has been the weakest of the big three in the short term, bears watching as it has been the Market leader since the 2009 reversal. Look for 2244 to provide support near term, with 2212 supporting just below. Resistance is at 2280-88 area. The VIX drooped for the second straight session and closed below chart support which was at 22.50. It closed down 7.7% to 21.43. Some key economic reports today. Futures are slightly higher this morning versus fair value.
Major Economic Reports Today
Initial/Continuing Claims-8:30am GDP-8:30am Mich Sentiment-9:55am Leading Ind.-10:00am FHFA Housing Price Index-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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