David Chojnacki S1F Market Technician
A better than expected Trade Balance report set the stage for a positive open for the major indices. After hitting highs in the late morning hours, the averages traded in a narrow range for the remainder of the session. By the final bell, the indices held their moderate gains, but were off their highs of the session. At the close, the DJIA gained 0.64%, the S&P added 0.61%, and the Nasdaq100 was up 0.88%. Breadth was positive, 2 to 1, on average volume. RSI's moved up in the session, with the DJIA the strongest at 67.5. ROC(10's) were mixed with the Nasdaq100 the only index declining and in negative territory. The Nasdaq100 was the strongest in the session, but remained with its MACD below signal. It moved back above its gap support level of 3540 and finished comfortably above. It would appear that it has more room to move up near term. The S&P closed right at the 1837 resistance level and its MACD has moved close to its signal. With the S&P holding its near term support, it looks like it has more near term upside. The VIX continued its downward swing, finishing at 12.92. It is now moving back to test the 12 area, which has recently provided a bottom. Near term support for the S&P now sets up at 1825 and 1812. Near term upside resistance for the S&P is now at 1837 and 1850. The Nasdaq100 near term support remains at 3550 and 3537. Near term upside resistance is now 3562 and 3575. The Nikkei was up strong over-night, however, Europe is weaker in early trade. Some key economic numbers today, including FOMC minutes. Futures are mixed this morning versus fair value.
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