David Chojnacki - Market Technician
The market opened slightly lower, but quickly reversed to the upside. Economic numbers were mixed, but the Consumer Confidence came in at 104, above expectations. Investors took their lead from this and moved prices higher until just after the noon hour. The PM saw equities remain steady into the close, regaining much of the prior session's losses. By the end of the day the major indices ended with moderate gains. At the close, the DJIA was up 0.74%, the SPX moved up 0.64%, and the NDX gained 1%. Breadth was positive, 1.4 to 1, on average volume. ROC(10)'s advanced across the board, with the DJIA and SPX crossing back into positive territory. The NDX remained in positive territory. RSI's moved higher with the DJIA the lowest at 47 and the NDX, the leader, at 58, and the SPX in between at 50. The SPX saw its MACD cross back above its signal, the NDX remains above and the DJIA continued below. The ARMS index ended at 1.10, slightly bearish. The major indices reversed the prior session and regained most of the losses. The DJIA remained just below its 20D-SMA of 18283. The NDX remains comfortably above its 20 and 50D averages. The NDX closed a gap at 4853. It is within striking distance of last week's new highs of 4891(closing) and 4896(intra-day). The DJIA and SPX have yet to reconfirm the NDX highs of last week. The SPX closed yesterday at 2159, 31 points below its August closing high of 2190 and 1 point above its 20D-SMA of 2158. Its intra-day high in August was 2193. It moved above the 2147 level, which is the pivot point for near term bias being positive. The VIX spiked to the downside by 9.6%, ending at 13.10. Near term support for the NDX is at 4853 and 4825. Near term resistance is at 4875 and 4891. Near term support for the SPX is at 2147 and 2125. Near term resistance is at 2162, 2168, and 2175. Europe is up moderately in early trade. US Futures are pointing slightly higher in the pre-market.
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