David Chojnacki - Market Technician
Poor Housing Numbers before the bell, set the stage for a weak open. It didn't help that Europe was also down in early trade. The indices moved to the downside for the entire morning before finally finding support. The NDX was not as weak, as it was propped up by a strong AAPL. Equities tried to salvage the day by rising in the PM, but the DJIA finally closed with a moderate loss. At the close, the DJIA fell 0.71%, the S&P gave up 6.9 points, and NDX slipped just 0.12 of a point. Breadth was slightly negative, 1.1 to 1, on below average volume. RSI's were little changed in the session, with the DJIA and S&P slipping below 50. ROC(10's) were mixed in the session, with the S&P the only major index advancing. MACD's remain below signal. The ARMS index finished at 1.10. The top performing sectors were Utilities and Energy, a bit of a defensive play. All three major averages remained above their 50D-SMA's and critical retracement levels. This keeps near term bias now to the upside. The DJIA and S&P, however, have not moved back above their December closing highs of 18053 and 2090, respectively. They also developed 'hanging man' candlesticks in yesterday's session indicating a possible near term reversal. We continue to watch 2055(50%) in the S&P to keep near term bias to the upside. The VIX rose slightly to finish at 16.66, relatively tame. Near term support for the S&P remains at 2070 and 2060, 2055. Upside resistance near term continues at 2088-90 and 2100. The NDX near term support remains at 4352-50 and 4325. Upside resistance is at 4388 and 4400. All eyes will be on the FED decision today and their precise wording. Expect little action until the announcement at 2PM. Europe is lower in early trade. China continued its recent strong run-up. U.S. Futures are lower pre-market.
Major Economic Reports Today
Crude Inventories-10:30am FOMC Rate Decision-2:00pm
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