David Chojnacki S1F Market Technician
After opening to the upside, the indices then traded with a little up and down action, but in a narrow range. A brief sell-off, right before the closing bell, left the averages in the negative for the session. At the close, the DJIA was down 45 points, the S&P gave up just 2.6 points, and the Nasdaq100 off just 0.75 of a point. Breadth was just slightly negative, on below average volume once again. The last two sessions have seen some pullback and or sideways action, after the recent move to new highs. Since we were clearly in over-bought territory according to RSI readings, this would seem to be healthy action. ROC(10's) remain positive and near term technicals remain strong. The VIX continued to lose ground, as it lost 2.8% to close at 15.13. This is a 'contrarian move' to the averages closing to the downside. Not much change in near term support or
resistance levels after the last session. The DJIA continues to find support at 13125 and the last session closed one point below. We would continue to believe that this is still support, along with 13030(20D-SMA). Resistance continues to be 13250 and 13300. The S&P dropped 2.6 points, but remains holding the 1400 level, which continues as support. Below here, we have support at 1375. Upside resistance continues to be 1412 and 1425. The Nasdaq100 closed nearly flat, losing less than a point in the session. Once again it traded in a narrow range and except for the last 15 minutes had been positive for most of the session. It closed just below 2737 support, at 2736. We would expect 2737 and 2725 to hold as support. Resistance on the upside remains at 2750 and 2775. Futures are lower versus fair value early this morning, pointing to a weak open.
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