David Chojnacki S1F Market Technician
The Market opened strongly to the upside, but after the first half hour began a slow drift downward into the close. The initial gains were strong enough to keep the averages in the black at the final bell. The DJIA was up .48%, the S&P .36%, and the big gainer, the Nasdaq100 with a 0.9% gain. Breadth was positive, 1.6 to 1, on volume that was average to slightly above. We continue to trade in a narrow range for the last several sessions, after breaking out of a consolidation pattern. The S&P, for instance, has closed between 1289 and 1295 in the last 5 sessions. Near and short term technicals remain positive, with RSI’s in the low to mid 60’s and ROC(10)’s remain positive. We look for a move out of this current range on some volume to give the breakout some conviction.
The DJIA once again finding support at 12400 and 12300. Resistance to the upside remains 12500 and 12600. The S&P traded as high as 1303 in yesterday’s session. The first time we moved above 1300 since the end of July 2011. The S&P fell back during the session but remained above the recent break-out level. Support continues at 1285 and 1263, with resistance at 1300 and 1312. The Nasdaq100 was the best gainer in the last session, moving above its recent high of 2401 to 2403, but unable to hold that level into the close. It did form a ‘Doji’ in yesterday’s session(possible reversal signal). Support is now at 2388 and 2375. Resistance remains at 2401 and 2412. The VIX jumped 6.1% to close at 22.20. We’ll look for a follow through in today’s session, to see if volatility is trying to make its way back in. Futures are slightly higher early this morning, suggesting some strength to the upside.
NAHB Housing Market Index-10:00am
Major Economic Reports TodayPPI-8:30am Net Long-Term TIC Flows-9:00am Industrial Prod./Capacity Util.-9:15am
NAHB Housing Market Index-10:00am
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