David Chojnacki - Market Technician
The Market opened up, following through on where it left off in the prior session. The major indices were all down moderately, rather quickly and continued lower into the PM hours. There was a small bounce early in the PM, but news of escalating attacks in Israel and Gaza, kept buyers on the sidelines. By the final bell, the averages were down moderately for the second straight session, and only slightly off their lows of the day. At the close, the DJIA was off 0.69%, the S&P down 0.7%, and the Nasdaq100 losing 1.1%. Breadth was negative, 1.6 to 1, on a pick-up in volume. RSI's dropped considerably and the near term over-bought conditions have been eradicated. ROC(10)'s were mixed, but remain in positive territory. Once again momentum and tech stocks were the big losers making a big impact on the Nasdaq100 and the IWM (small-Nasdaq100 approached its 20D-SMA(3827) in the session, but managed to hold and close above. The DJIA traded below its 20D-SMA(16887) in the session, but bounced off and closed 19 points above. The two session weakness in the DJIA and S&P put their MACD's below signal and warrants near term caution. The VIX was up for the second straight session and traded as high as 12.51. It did close lower at the final bell up, 5.7% to 11.98. Near term support for the S&P is now at 1962 and 1957. Near term upside resistance is now at 1975 and 1988. The Nasdaq100 near term support is now at 3850 and 3837. Near term upside resistance is now at 3875 and 3888. AA beat earnings expectations, but revenue remained flat. It was trading up after hours. We get FOMC minutes today, which may have some impact on the major averages. Europe and the Nikkei are mixed in early trade. Futures are mixed and little changed before the opening bell.
Major Economic Reports Today
Crude Inventories-10:30am FOMC Minutes-2:00pm
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