David Chojnacki S1F Market Technician
A positive Market during the morning hours, reversed like clockwork at the noon hour. Some up and down trading in the PM, but at the final bell, the big three indices were off between 0.5% and .75%. Breadth was negative, 1.4 to 1, on just below average volume. The S&P traded above its July high for a time, but could not hold that level into the close. RSI's pulled back some and ROC(10's) declined on the weakness. The MACD's for the DJIA and S&P remain below signal, and may be indicating additional weakness. We mentioned last week that some near term consolidation should be expected after the long run, perhaps as much as 4%. The VIX is also indicating some Market weakness, as it has been up 5 of the last six sessions. Yesterday it gained 8.1%
to close at 21.14, back above the benchmark 20 handle. The DJIA closed below its April'11 high of 12810, but bounced off its 20D-SMA during the session. Look for 12764 and 12724 to provide near term support. Upside resistance is now 12810 and 12890. The S&P, which lost 0.5% during the session, still remains in a 9 day narrow trading range. Once again, 1335 and 1325 will provide important near term support. Resistance on the upside remains at 1353 and 1363. The Nasdaq100 hit the 2600 level during the session, but it too was susceptible to yesterday's PM sell-off. It did hold support above the 2550 level, and that remains near term support along with 2525. Upside resistance continues at 2575 and 2600. Several key economic reports today, including the PPI number.
Major Economic Reports Today
Initial/Continuing Claims-8:30am Housing Starts/Building Permits-8:30am PPI-8:30am Phila Fed-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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