David Chojnacki S1F Market Technician
A positive open in the indices, lead to rising prices throughout the session. A strong rally in the last hour had the Market finish near the highs of the day and with impressive gains. At the close, the DJIA gained 1.6%, the S&P rose 1.8%, and the ever strong Nasdaq100 adding 1.9%. Breadth was positive, 4.1 to 1, on above average volume. It was encouraging to see the pick-up in volume on a positive session. RSI's increased, with the S&P and the Nasdaq100 moving over the 70 level, putting them in over-bought territory. The DJIA finished with an RSI of 68. ROC(10's) leaped on the strength and are all positive and rising. The large bullish candles were another indication that we broke out above the recent highs in all three major indices. While MACD's remained just below signal, there was a decided turn to the upside. Near term
technicals improved and we should see additional follow through. The DJIA will now find support at 13125 and 13000. Upside resistance sets up as 13250 and 13300. The S&P closed at a new recent high and just below the 1400 level, which now becomes near term resistance, along with 1425. Support now sets up as 1375 and 1363. The Nasdaq100 continues to lead the indices with another strong session. It continues at levels not seen since 2000. The Nasdaq100 closed just below 2700, and that level now becomes near term resistance, along with 2725. We have support at 2675 and 2646-50 area. The VIX was down for the fourth straight day and lost 5.3% to 14.80. At one point in the session it was indicated at below 14. It appears we are moving into a fifth wave up-leg of an extended third wave bull move. We'll look for confirmation of this in the next several sessions and discuss the ramifications. Futures are higher this morning versus fair value.
Major Economic Reports Today
Current Account Balance-8:30am Export/Import Prices-8:30am Crude Inventories-10:30am
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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