David Chojnacki - Market Technician
Poor Claims Numbers and Unit Labor Costs did not impact the opening, as equities opened flat. It didn't take long for the major indices to fall rapidly mid-morning. Once again, buyers stepped in at technical levels to pull equities out of the doldrums. The afternoon saw the averages trade sideways into the final bell, ending little changed. Investors were leery of making big moves before today's Employment Report. At the close, the DJIA slipped 4.1 points, the S&P inched down just 2.3 points, and the NDX was down by 14.6 points. Breadth was just slightly negative, on below average volume. RSI's fell, with the NDX the only index maintaining a 70 handle, at 70.7. ROC(10's) declined in the session, but remain in positive territory. All three indices remain with their MACD above signal. The ARMS Index finished at 1.15, just slightly weak. With the little change in the session, not much changed technically. The DJIA and S&P developed 'Doji's' in the session indicating a possible reversal of the near term direction. We have also had the VIX giving signs of some fear recently. In yesterday's session it hit its 200D during the day, but then pulled back to close lower. It finished the day down 2.9% at 15.05. We did see the VIX's MACD move above signal. The NDX remains within striking distance of its recent new highs. It traded as high as 4731 in the session, just 6 points below the prior session's intra-day high of 4737. The SPX traded between 2090 and 2108 on the day, closing just a point below 2100. The 2112 area is a level of formidable resistance. Energy has been strong lately and the top performing sector in yesterday's session, closely followed by I/T. Near term support for the NDX remains at 4700, 4694, and 4679. Upside resistance is at 4719, 4725 and 4737. Near term support for the S&P is now at 2088 and 2079-75. Near term upside resistance is now at 2112 and 2125. Europe is down in early trade and US Futures are flat waiting for the Employment Report.
Major Economic Reports Today
Employment Report-8:30am Consumer Credit-3:00pm
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