David Chojnacki - Market Technician
Mixed economic reports yesterday had equities moving to the upside at the open and then quickly reversing after the first hour. The major averages then moved steadily to the downside until the final hour when a last hour rally brought equities nearly unchanged for the session. The NDX finished in the black at the final bell, while the other indices were slightly negative. Volume was below average, as many investors may be waiting for today's Employment Report before adding to their positions. At the close, the DJIA fell 22.7 points, the S&P slipped 1.8 points, and the NDX gained 14.8 points. Breadth was slightly positive, on below average volume. ROC(10)'s advanced in the session and remained in positive territory. All three major indices remain with their MACD's slightly above signal. The ARMS index finished the day at 1.22, slightly negative. It was lethargic session, though our trading desk was busy the entire day. All three major indices developed 'Doji's' in the session, indicating a possible near term reversal. The major averages have traded in a narrow range since the beginning of April, and have been unable to move to new highs established in May of 2015. The DJIA fell below its 20D(17745) and 50D(17747) moving averages. The SPX remains above its 50D-2076 and its 20D(2079). It also closed above the key 2081-2084 area, but remained below 2100. There is not much resistance till 2112-2113. The NDX moved higher, but found resistance at the 4467 level, a key wall. It did manage to close above key near term technical levels, keeping near term bias to the upside. The VIX finished at 14.76 down 1.3%. Near term support for the NDX is at 4420, 4416 and 4401. Near term resistance is at 4467 and 4500. Near term support for the SPX is at 2084-81, 2076 and 2050. Near term resistance is at 2112, 2113 and 2120. Europe is up moderately in early trade. US Futures are higher before the bell, as traders wait for the pre-market Employment Report.
Major Economic Reports Today
Employment Report-8:30am Consumer Credit-3:00pm
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