Today's Technical Outlook - 12/20/2106
Seeking Alpha Analyst Since 2009
Major Economic Reports Today
No reports scheduled
David Chojnacki - Market Technician
The market opened Monday moving to the upside with no major Economic news as the catalyst. By late morning, equities began to reverse. There was some breaking news of a terrorist attack in Turkey, which may have had some impact in reversing the trend. The major indices did recover and traded in a choppy manner the remainder of the session. Late in the session, another Terror attack in Germany seemed to have a negative impact on the markets. The NDX did trade at a new intra-day high, before closing just below its recent closing high of 4935. The averages ended with small gains on the day. At the close, the DJIA and SPX were up 0.2%, and the NDX gained 0.41%. Breadth was positive, 1.7 to 1, on low volume. ROC(10)'s declined but remained in positive territory. An indication of the waning momentum. RSI's moved slightly higher with the DJIA continuing to be the strongest at 79.8. It remains in over-bought territory. All three major indices remain with their MACD above signal. The ARMS index ended the day at 1.42, a bearish reading. The market has moved sideways in the last 4 sessions, performing a healthy consolidation. This sets up the major averages for more gains. With the upcoming holidays, we are entering a slowing time for the markets. There may, however, be some managers attempting to catch up on equities before year-end. The NDX closed within 1 point of its earlier high, and trade at a new intra-day high of 4963. The NDX is comfortably above its 20D-SMA at 4857. The SPX closed right at the 2262 target level and now becomes support. The target of 2277 and last week's intra-day high continues to be resistance on the upside. The VIX fell 4% to 11.71, displaying very little volatility. Near term support for the NDX is at 4925 and 4909. Near term resistance is at 4935 and 4960. Near term support for the SPX is at 2262 and 2250. Near term resistance is at 2277 and 2292. Europe is up slightly in early trade. US Futures are pointing higher in the pre-market.
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