David Chojnacki S1F Market Technician
Monday's recently have seen very low volume, and yesterday was no exception. The indices were making a slow steady climb to new highs, but after 2PM, we saw a sell-off begin which held into the closing bell. The S&P and the Nasdaq100 were able to hold some of their gains for new highs, but the DJIA closed just below. At the close, the DJIA gained just 6.5 points, the S&P added 5.5 points, and the Nasdaq100 tacked on 0.75%. Breadth was positive, 1.7 to 1, on below average volume. Near term technicals remain strong, with RSI's near or above 70 for all three major indices. RSI's are moving into over-bought territory. ROC(10's) are positive and advanced in yesterday's session. MACD's remain positive for all three major indices. Technicals continue to be strong and we expect additional upside, with the S&P testing 1425 and the Nasdaq100 testing
2750. Yesterday's strength was in Technicals and Financials. The VIX added 3.9% to finish at 15.04, remaining at low levels. The DJIA will now find support near 13125 and 13000. Upside resistance is now at 13250 and 13300. The S&P held on for another new high and remains above the 1400 level. We find support at 1400 and 1375. On the upside, we have resistance at 1412 and 1425. The Nasdaq100 closed at a new high and remains the leader of the big three. Look for resistance at 2737 and 2750. Support is now at 2725 and 2712. It continues to look like we are in a fifth wave of an extended third motive wave, and at some point we will look for a fourth wave consolidation or pullback. Futures are pointing to a weak open as they are lower versus fair value this morning.
Major Economic Reports Today
Housing Starts/Building Permits-8:30am
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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