Contributor Since 2009
Major Economic Reports Today
Pending Home Sales-10:00am Crude Inventories-10:30am
David Chojnacki - Market Technician
The market opened higher on the first day back from the holiday. The averages were slightly higher in the prior week, with the DOW making another new high. Yesterday, the strength was in the Nasdaq, both the NDX 100 and the Nasdaq Composite. These indices have lagged the other major indices and are just now gaining parity. Both Nasdaqs' made new intra-day and closing highs. It was a matter of investors going back into Tech issues, as some of the current hot sectors were becoming over-bought. The DJIA and SPX ended with little gains on the day, while the NDX had a moderate move to the upside. At the close, the DJIA added 11.2 points, the SPX inched up 5 points, and the NDX gaining 0.52%. Breadth was positive, 1.6 to 1, on weak(holiday) volume. ROC(10)'s were mixed with the DJIA moving lower and the NDX and SPX advancing. All three averages remain in positive territory. RSI's were slightly higher and the DJIA remains the strongest at 77.7. The DJIA and SPX now see their MACD below signal, due to the recent sideways action. The NDX continues to see its MACD above signal. The ARMS index ended the day at 0.62, a bullish reading, despite the fact that the DJIA and SPX ended near their lows of the session. The DJIA and SPX traded in a very narrow range, despite a Consumer Confidence number reported at its best since 2001. The DJIA 20D-SMA sits at 19639, while the SPX 20D is at 2242. The DJIA continues to have critical near term support at 19500 and the SPX at 2187. The star of the session was the NDX, which closed at a new high of 4965 and an intra-day high of 4992. The NDX 20D-SMA is at 4899. The VIX diverged from equities making a move to the upside, adding 4.8% to 11.99. Near term support for the NDX is at 4962 and 4953. Near term resistance is at 4975 and 5000. Near term support for the SPX is at 2262 and 2250. Near term resistance is at 2271 and 2277. Europe is mixed in early trade. US Futures are pointing slightly higher in the pre-market.
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