Today's Technical Outlook - 12/01/2016
Growth
Seeking Alpha Analyst Since 2009
Market Summary
David Chojnacki - Market Technician
Good economic numbers seemed to propel the major indices at the open. The DJIA and SPX even made new intra-day highs early on, before reversing direction and moving to the downside. Equities moved lower through the day, despite energy issues moving higher on what seems to be an Opec agreement. The indices ended at their low of the day with a sell-off at the closing bell. The major indices ended mixed, with the DJIA inching out a small gain, the SPX a small loss and the NDX falling significantly. At the close, the DJIA added 1.98 points, the SPX gave up 5.8 points, and the NDX lost 1.28%. Breadth was negative, 1.5 to 1, on above average volume. ROC(10)'s declined in the session, with all three major indices remaining in positive territory. RSI's were mixed, with the DJIA still at an over-bought level of 73.1. All three major indices continue with their MACD above signal. The ARMS index ended the day at 0.62, a bullish indicator. This diverged from the actual last few minute sell-off. It was an interesting day as we saw more consolidation. The NDX was the biggest loser, with Techs being weak. An example of this is a 2% sell-off in FB. All three major indices developed candlesticks which indicate a near term bearish signal. However, prices remain above near critical support levels. The NDX dropped below its 50D-SMA of 4825, but holds above its 20D-SMA of 4793. Near term critical support is at 4766. IWM(Russell 2000) was off 0.5%, and down for the third straight session. The SPX, despite moving to a new intra-day high, closed below the 2200. Critical near term support for the SPX is at 2147-2149. The VIX gained 3.8% to finish at 13.39. Near term support for the NDX is at 4800 and 4793. Near term resistance is at 4825 and 4850. Near term support for the SPX is at 2190, 2188 and 2175. Near term resistance is at 2212, 2213 and 2225. Europe is down significantly in early trade. US Futures are mixed in the pre-market.
Major Economic Reports Today
Initial/Continuing Claims-8:30am Construction Spending-10:00am ISM Inbdex-10:00am NatGas Inv.-10:30am Auto Sales-11:00am
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