David Chojnacki S1F Market Technician
This time the Market started out flat, but gradually built upward momentum through-out the session and finishing moderately higher. The DJIA was up .78%, the S&P gaining 1.1%, and the Nasdaq100 with a 1.3% gain. Breadth was positive, 4 to 1, on volume that was average to slightly above. The Market showed some renewed momentum yesterday when the S&P closed above the 1300 level for the first time since July ’11 and the Nasdaq100 moved through and closed above a recent high of 2401. Near and short term technicals remain strong and RSI’s are beginning to move close to oversold territory. Since the end of November, the S&P and Nasdaq100 have gained close to 13%. The strength in the Nasdaq100, which has a bevy
of tech stocks, is exemplified by the recent performance of Intel. Intel had closed yesterday at a level not seen since the end of 2007. The DJIA moved through some key levels and now has support at 12500 and 12400. It now targets its recent July ’11 high of 12724, but we see some resistance near 12674. The S&P is also on target to test its July closing high of 1353. Before that level we have resistance at 1312 and 1325. Support is at 1300 and 1285. The Nasdaq100 as noted, moved through a recent high and closed right at a resistance level of 2425, which will become support along with 2401. Resistance is now set at 2429, which was a July ’11 high and 2009 bull rally high. The VIX pulled back 5.9% to close at 20.89. Futures are slightly higher early this morning, suggesting some strength to the upside.
Major Economic Reports Today
Initial/Continuing Claims-8:30am CPI-8:30am Housing Starts/ Building Perrmits-8:30am Phila Fed-10:00am Crude Inv.-11:00am
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