David Chojnacki - Market Technician
The market opened to the downside yesterday, with little in economic news to move the indices. Greece remained on investors minds and traders were waiting for the FOMC minutes at 2:00pm. Equities traded in a narrow range till the minutes and then exploded to the upside when surety of no June rate hike was in the report. It didn't take long for equities to come back down and were trading barely changed by the final bell. At the close, the DJIA slipped 26.9 points, the S&P fell 1.9 points, and the NDX managed a small gain of 1.5 points. Breadth was fairly flat, 1.06 to 1, on below average volume. RSI's were little changed and remain in the upper 50's. ROC(10's) advanced in the session. MACD's remain above signal. The ARMS finished at 1.08, giving little indication to the bias at the close. After the DJIA and S&P hit new highs on Monday, we are seeing little indication of confirmation from any other major indices. They have languished just a few points below those highs for the last two sessions. The S&P closed at 2125, just near a three support trend-line. Technicals remain with an upside bias, but the slow choppy trade which began in February continues. The NDX has yet to break to a new high and closed at 4505 yesterday, 31 points from the earlier high of 4536. It developed a 'Doji' in yesterday's session, indicating a possible reversal of direction. The DJT fell in the session and remains the weakest of major indices. It is back below its 200D-SMA and at its lowest level since October of 2014. Like the NDX, the IWM(small-caps) has been unable to move back to new highs. The VIX was little changed in the session finishing at 12.88. Near term support for the S&P remains at 2125 and 2117. Upside resistance near term is at 2137, 2140 and 2150. The NDX near term support remains at 4500 and 4475. Upside resistance is at 4525 and 4536. Some key economic reports today(see above). Europe is mixed in early trade and US Futures are slightly lower before the bell.
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Major Economic Reports Today
Initial/Continuing Claims-8:30am Existing Home Sales-10:00am Phila FED-10:00am Leading Indicators-10:00am NatGas-Inv.-10:30am
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.