The Market opened slightly weaker, traded sideways for most of the session and then closed little changed. At the close, the DJIA was off 20 points, the S&P500 off 2, and the Nasdaq100 off 5. Volume was lighter. Very little change in the technical landscape. Longer term, all three indices remain just below their 20 week –EMA. The Nasdaq100 remains above primary support of 1742, while the S&P500 closed just below 1070 support. They remain within reach of their 200D-EMA( which is 1679 and 1047). The DJIA remained above primary support of 9925, and stayed above 10000. The Financials (XLF), closed up again, but off its highs of the day. Closing up .11 to 13.91. It remains below its recent trading range of 14-14.50, and below its 200D-EMA(14.10). Support is now at 13.75, 13.50, 13.25 and 13.00. Resistance now at 14.00, 14.15, 14.30 and 14.40. GOLD(GLD) closed down .29 to 105.12. It held important support near the 104.50 area. The VIX closed down 2.3% to 25.40.
Long term, we remain in a correction, below ten month trading channel and 50% retracement levels in the DJIA and S&P500. Short term, bias remains to the downside.Near term, a lackluster session with no change to the technical landscape or direction. Earning’s season begins to wind down this week. Today’s futures(at 8:15am) are slightly higher versus fair value. Economic growth indicators and U.S. Treasury funding have become the new key Market movers.
Major Economic Reports Today:
Initial/Continuing Claims-8:30am Retail Sales-8:30am Business Inventories-10:00am
MAJOR INDICES- Short term support and resistance levels.
DJIA-(close 10038) SP500-(close 1068) N-100-(close 1749)
S R S R S R
10000 10105 1050 1070 1742 1758
9925 10150 1047 1078 1735 1763
9850 10200 1035 1080 1730 1765
9774 10213 1030 1085 1720 1775
9725 10280 1025 1091 1700 1787
9694 10355 1020 1099 1679 1799
9650 1000 1100 1675 1800
"In FXE (CurrencyShares Euro Trust), we saw buyers of the February 135-136-137 butterfly put spread 10,000 times. These investors seem to be positioning for a slow drift to $136 in the FXE in the near term"
FAZ(Financials Bear-3X)- Closed down to 20.80. May be in limbo, till we get above 21.20. There is some support at 20.50. Next resistance at 22.20 and 23.00.
QID(Proshares Q’s ultra short)-Closed up .08 to 21.22. Remains a buy over 21.40. Support at 20.75, 20.40 and 20.10. Resistance at 22.00-22.25.
UUP(Powershares U.S. Dollar)- The UUP is meeting a lot of congestion near 23.70 area. Conversely, the UDN(Powershares Dollar Bearish) has support near 26.50, but remains below its 10 and 200D-EMA’S.
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