Contributor Since 2009
David Chojnacki - Market Technician
Mixed economic news had the major indices weak in the early morning hours. We expected some additional near term weakness and consolidation and we got that early. Equities then turned around and steadily moved higher, through the remainder of the session. Though volume dropped off, the major averages ended the day near their highs of the day. The DJIA made a new closing high. All three major indices closed with small gains. At the close, the DJIA gained 35.5 points, the SPX added 7.5 points, and the NDX gained 10.5 points. Breadth was decidedly positive, 2.3 to 1, on below average volume. ROC(10)'s declined with the DJIA and SPX remaining in positive territory and the NDX in negative. This exemplifies the declining momentum. RSI's inched higher, with the DJIA continuing to be the strongest at 75.7. The NDX remains the only major index with its MACD below signal. The ARMS index ended the day at 0.97, a neutral reading. The DJIA continued its move higher establishing in a new closing high. It failed to test the prior session's intra-day high of 19274, getting only as high as 19255. The DJIA and SPX both developed 'Hanging Man' candlesticks in the session , a topping formation. The NDX developed a 'Doji' a reversal of direction indicator. Bias to the upside remains positive, but these signals may be indicating more consolidation before we move much higher. The SPX traded within one point of its recent high of 2213 and ended at 2212. Watch this level for further upside strength. The NDX continues to be the weakest of the big three, but moved above its near term 50% retracement level of 4766. Zit remains just below its 20D-SMA (4803) and its 50D-SMA(4817). The VIX fell 3.1% to 11.76. Near term support for the NDX is at 4766 and 4750. Near term resistance is at 4803 and 4817. Near term support for the SPX is at 2200 and 2190. Near term resistance is at 2213 and 2225. Europe is up moderately in early trade. US Futures are mixed in the pre-market.
Major Economic Reports Today
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