David Chojnacki S1F Market Technician
After an open to the upside, the Market sold off into the late morning hours. A rally which began after the noon hour put the indices just into positive territory at the close. Breadth was positive, 1.4 to 1, on average volume. The gains were small, but once again the DJIA and the Nasdaq100 made new highs. The S&P traded just above the 1350 level and closed just below. RSI's are lofty, with the range between 70 and 80 for the big three. ROC(10)'s finished positive and advancing for all three. No change in technicals as strength continues across all timeframes. Near term, we continue to have the over-bought condition suggesting that some type of pullback is imminent. So far every brief intra-day pullback has been bought. In yesterday's session, we had an increase in the VIX while the indices registered a small gain. The VIX suggests that even with the momentum on the buy side, some protection is being initiated at these levels. The DJIA has support at 12820 and 12724. Upside resistance continues at 13000 and 13125. The S&P was once again unable to penetrate the July high of 1353. Resistance continues at 1353 and 1363. Support lies just below at 1343 and 1337. The Nasdaq100 closed at a new high once again and resistance remains at 2550 and 2575. Support can be found at 2525 and 2512. The VIX gained 2.8% to 18.16. As noted above protection was being added. Futures are slightly lower versus fair value, early this morning.
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