Today's Technical Outlook - 12/08/2016

Dec. 08, 2016 9:06 AM ET
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Growth

Contributor Since 2009

Street One Financial LLC (S1F or Street One) is an independent entity affiliated with Precision Securities, LLC., a full service registered broker dealer and a member of FINRA/SIPC. Street One specializes in educating, evaluating and trading ETFs, equities and options. Our firm assists portfolio managers in constructing their portfolios and identifying which ETF products may provide the best desired exposure by specific manager objective, fees and liquidity. The ETF/ETP landscape is evolving rapidly and has diversified quickly beyond passive equity index ETFs. Now actively managed strategies, fundamental and quantitative ETFs, as well as those that offer exposure to fixed income, commodities or even volatility indexes are available to all investors. Street One believes the key to understanding this rapidly changing environment is to learn how specific products work and where they may fit within a manager's portfolio. In addition to ETFs, options, and equities, we also handle closed end funds (CEF) trade execution and access to liquidity. All Street One Financial trades are executed by Precision Securities, LLC.

Market Summary

David Chojnacki - Market Technician

The market opened slightly lower yesterday and languished for the first few hours. Once the European markets closed is was like someone lit a match for US equities. The major indices began a rally that strengthened through the PM hours and remained strong going into the close. By the final bell, the major averages closed at or near their highs of the session with significant gains. The DJIA and SPX made new all-time highs. The DJIA lead the way, again, and this time we had a DOW Theory confirmation with the DJT(Dow Transports), making a new all-time high. At the close, the DJIA added 1.55%, the SPX moved up 1.3%, and the NDX also gained 1.3%. Breadth was decidedly positive, 3.3 to 1, on slightly above average volume. ROC(10)'s advanced with the DJIA and SPX remaining in positive territory and the NDX in negative. RSI's moved higher, with the DJIA continuing to be the strongest at 82.3. The SPX joined the DJIA in over-bought territory ending at 72.7. The NDX remains the only major index with its MACD below signal. The ARMS index ended the day at 0.89, a slightly bullish reading. Yesterday was a strong session with equities breaking out of the recent consolidation and moving to new highs. Volume also increased confirming the gains. Breadth was also decidedly positive and we saw the IWM(Russell 2000) depict this, making a new all-time high(135.90). All three major indices developed 'large Bull' candles, suggesting more upside. Near term Fibonacci extensions project an SPX of 2262 and 2277. Look for 2213 as critical near term support for the SPX. Watch for the NDX to hold its 50D-SMA(4817). A break-out of the NDX would take it through 4911. The VIX, diverged, and gained 3% to 12.15. Near term support for the NDX is at 4825 and 4817. Near term resistance is at 4875 and 4909, 4911. Near term support for the SPX is at 2225 and 2213. Near term resistance is at 2250 and 2262. Europe is up moderately in early trade. US Futures are pointing higher in the pre-market.

Major Economic Reports Today

Initial/Continuing Claims-8:30am NatGas Inventories-10:30am

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