David Chojnacki S1F Market Technician
The Market reversed direction from the prior session and recovered most of the prior day’s loss. The indices managed to gain between 0.8% and 1.1%. Volume was weaker than the prior down session and once again followed the script of a holiday week. Breadth was positive, 4 to 1. Near and short term technicals remain positive and RSI’s remain above the 50 level for all three major indices. Once again we near recent highs, which served as resistance levels several times in recent months. The DJIA closed back above its recent high of 12231, but just barely. It will act as near term support, along with the 12125 level. Look for the DJIA to find resistance near 12300 and 12385. The S&P closed right at its Fibonacci retracement level of 1263, but moved slightly
above its 200D-SMA(1259). Look for the 200D-SMA to provide near term support along with the 1250 area. The S&P also moved back in the black for the year, but just barely(2010 close at 1257). With the high volatility in 2011(VIX in the 40’s), it’s hard to believe that the S&P is nearly flat on the year. Watch the 1275 and 1285 levels to provide near term resistance. The Nasdaq100 closed above its 20D-SMA(2279) in yesterday’s session, but failed to move above its 50(2298) and 200D-SMA’s(2288). Look for these levels to once again provide resistance. The Nasdaq100 has support at 2280, 2273-75, and at 2244. The VIX closed off 3.7%, to 22.65, remaining just above chart support at 22.50. Futures are flat to mixed this morning versus fair value. A Happy New Year to everyone.
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