David Chojnacki S1F Market Technician
The Market started out strong right from the opening bell. After hitting highs for the day in the early PM hours, the indices traded sideways into the close. At the close, the DJIA was up .66%, the S&P gained .89%, and the Nasdaq100 finished the session up 0.8%. Breadth was decidedly positive, 5 to 1, and volume increased once again and was above average. Near and short term Technicals remain strong. ROC(10's) are positive and rising in the last session. We are watching a negative MACD in the DJIA and S&P, which is a result of a steep slope up and then eleven days of sideways action. The DJIA traded above its July closing high of 12724 during the session but was unable to hold that level into the close. The S&P also could not move up to test the July high of
1353 but had a nice gain and confirmed the 'golden cross' (50D-SMA above the 200D-SMA). The Nasdaq100 continues strong and once again made a new eleven year high. The Nasdaq100 remains over-bought short term with an RSI of 74. Look for support at 2475 and 2450. Resistance on the upside is at 2500 and 2508. The DJIA should find support at 12635 and 12600. Look for upside resistance at 12724 and 12810. The S&P moved away from the 1312 level, which it has traded near for several sessions and closed just below the 1325 resistance level. 1353, the July high, should be the next important resistance level. The VIX lost 4.5% in the last session to close at 18.55. The VIX continues to suggest some 'fear' is being removed from the Market and helps validate the current rally. Futures are slightly lower versus fair value, early this morning.
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