Today's Technical Outlook -1/2/2014
Seeking Alpha Analyst Since 2009
David Chojnacki S1F Market Technician
The Market opened the session to the upside as some economic news bolstered investor confidence. The strength continued into the noon hour as it looked like some year-end 'window dressing' was taking place. After a brief pullback in the afternoon, buyers stepped into the last hour, pushing the major indices to new highs. At the close, the DJIA added 0.44%, the S&P moving up 0.4%, and the Nasdaq100 tacking on 0.61%. Breadth was positive, 2 to 1, on holiday type volume. RSI's edged up in the session and all are clearly in over-bought territory near term, with the DJIA the strongest at 75.8. ROC(10's) remain positive across the board and advanced in the session. All three major indices closed the year with new highs, both closing and intra-day. It is interesting to note that the IWM (small caps), closed at a new high, but did not break the recent intra-day high. Technicals continue strong, but with the over-bought conditions some consolidation is not out of the question near term. Money managers looking to put money to work for the new year should prop up the averages for the beginning of the year. The 10 year was back over 3% at 3.03%. The VIX was as high as 14.41 during the session, but finished up 1% to 13.72. The S&P near term support remains at 1837 and 1825. Near term upside resistance for the S&P sets up as 1850 and 1862. The Nasdaq100 near term support is now at 3588 and 3575. Near term upside resistance is now 3600 and 3612. European markets are moderately lower in early trade. Futures are lower this morning versus fair value.
Major Economic Reports Today
Initial/Continuing Claims-8:30am Construction Spending-10:00am ISM Index-10:00am NatGas Inv. -10:30am
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