David Chojnacki - Market Technician
The market opened higher despite Employment Claims Numbers moving considerably higher. Investors were ignoring these numbers, or looking at the number as keeping the FED from raising rates in the near future. By the first half-hour, the major indices were reversing, lead by the NDX. AAPL and TECHS were weak again and leading the NDX to the downside. In the PM, the market reversed directions once again, and moved slowly to the upside until the last hour. In the final hour equities sold off, leaving the major averages little changed on the day. At the close, the DJIA was up 9.3 points, the S&P fell just 0.35 of a point, and the NDX gave up 0.42%. Breadth was slightly negative, 1.1 to 1, on below average volume. RSI's were little changed and remain in the 40's. ROC(10)'s advanced in the session, however, they remained in negative territory. MACD's remained below signal for all three major averages. The ARMS Index finished the day at 1.44, indicating the weakness in the last hour. The major indices remain trading in a narrow and choppy range. The market may be waiting to see the Retail numbers today. If earnings in retail stores are an indicator, we may see a poor number today. The DJIA and S&P developed 'Doji's ' , and the NDX developed a 'hammer'. We still have the near term weakness, but the averages closed off their lows. The DJIA held above its 50D(17627), but below its 20D(17870). The NDX has traded in such a tight range that 20, 50 and 200D moving averages are in 11 point range. The SPX closed 2 points above the 2062 support level for the second straight session. It came close to testing the 2050 support level, but held. The VIX fell 2.3% to 14.35. Near term support for the NDX is at 4328 and 4300. Near term resistance is at 4375 and 4410. Near term support for the SPX is at 2062 and 2050. Near term resistance is at 2075, 2081 and 2100. Europe is lower in early trade. US Futures are pointing moderately lower before the opening bell.
Major Economic Reports Today
PPI-8:30am Retail Sales-8:30am Business Inv.-10:00am Mich Sentiment-10:00am
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