Contributor Since 2009
David Chojnacki - Market Technician
It was another slow day for equities with the major averages trading within technical levels. There was not much news to move the market, however, a bigger than expected drawdown in Crude inventories lifted energy prices early in the session, providing support for equities. Oil eventually pulled back some and equities traded sideways most of the session. They had a hard time getting through the prior session's highs, however, the DJIA did manage to finish above 18000. At the close, the DJIA gained 66 points, the S&P added 6.9 points, and the NDX moved up 7.5 points. Breadth was positive, 2 to 1, on weak volume. RSI's moved slightly higher, putting all three major indices in the 60's. ROC(10)'s declined in the session, with all three major averages remaining in positive territory. All three major indices remain with their MACD's above signal. The ARMS index finished the day at 0.97, nearly neutral at the close. The DJIA and S&P moved to near term intra-day highs for the second session in a row. Once again, equities traded in a technical range with the SPX closing at its previous day intra-day high. It also found support during the session right at the 2112 level. The SPX remains comfortably above the 2081-84 key near term support level. It remains positioned to test the 2015 May closing high of 2130. The DJIA did close above 18000, but remains just below the recent April high of 18167. The NDX closed just below the 4522 "Gap' level. It continues to trade well above its 50D-SMA of 4447. IWM(small-caps) continues to lead, gaining 0.74% yesterday to finish at 118.43. The VIX edged up just 0.03 of a point to close at 14.08. Near term support for the NDX is at 4500 and 4447. Near term resistance is at 4522 and 4550. Near term support for the SPX is at 2111-12 and 2100. Near term resistance is at 2125 and 2130. Europe is down moderately in early trade. US Futures are pointing significantly lower before the bell.
Major Economic Reports Today
Initial/Continuing Claims-8:30am Wholesale Inventories-10:00am NatGas Inv. - 10:30am
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