David Chojnacki S1F Market Technician
The Market lost nearly 1% in the first hour of trading, but then slowly climbed back for a mixed close. At the close, the DJIA was down 6.7%, the S&P off 3.3 points, and the Nadsaq100 finishing positive by 3.5 points. Breadth was negative, 1.6 to 1, on below average volume. Since closing highs were reached a few sessions ago, the DJIA and S&P have pulled back nearly 1%, while the Nasdaq100 closed out at a matching high(2465). Some of the over-bought condition has been taken out of the DJIA and S&P, but the Nasdaq100 still retains its near term strength. We saw the DJIA and S&P have their MACD cross below signal, but they held their 20D-SMA intra-day. Was this the correction we expected? Is it over? The next few sessions should help answer those
questions. The DJIA found support just near its 20D-SMA(12530) in today's session and we can expect it and 12600 to provide support once again. Resistance continues at 12724 and 12810. The S&P also found support near its 20D-SMA(1298), bouncing off the 1300 level during the session. The important number seems to be 1312, as we have closed near that level several times, as it has acted as both resistance and support. Look for near term resistance to be found at 1325 and 1337. The Nasdaq100 closed at 2465, matching the high set a few days ago. It continues to be technically strong and lead the other indices. Support is at 2429 and 2412, with near term upside at 2475. The VIX gained 4.7% to 19.40, and for a time was above the 20 handle during the session. Futures are higher versus fair value, early this morning.
Major Economic Reports Today
Employment Cost Index-8:30am Case Shiller-9:00am Chicago PMI-9:45am Consumer Confidence-10:00am
ALL PRICES NOTED IN THIS PUBLICATION ARE AS OF THE CLOSE ON TRADING PRIOR TO TODAY'S DATE, UNLESS OTHERWISE INDICATED
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