Contributor Since 2009
Major Economic Reports Today
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David Chojnacki, Market Technician
With little news to move the market at the open, traders pushed prices slowly higher. With options expiring at the close, some of the action was obviously options related. The major averages pulled back somewhat after the first hour, but held on to the gains at the close. The gains were moderate, however, the NDX once again made new highs. There were no major surprises in Pres. Trump's inaugural speech, yet we saw equities take a small drop after the speech(sell the news). At the close, the DJIA added 0.48%, the SPX gained 0.34%, and the NDX was up 0.24%. Breadth was positive, 2 to 1, on above average volume. ROC(10's) were mixed in the session. The ARMS Index ended at 0.79, a bullish reading. For the week, the DJIA fell 0.2%, the SPX slipped 3 points, and the NDX gained just 4 points. It was the second week that the major averages changed very little. The VIX finished Friday at 11.54, down 9.7%. For the week, the VIX was up just 2.7%. Couple key numbers this week: GDP, Durable Orders and Existing Home Sales. Trading Trends Long term, the upside bias continues. The NDX made new highs once again, closing at 5063 and trading as high as 5085. The DJIA and SPX continue consolidating since early December and are poised to make new highs. The NDX and SPX remain comfortably above their 200D-SMA's of 4694 and 2150, respectively. Short term, the bias continues to the upside as the averages remain well above their 50% retracement levels. Near term, the consolidation in the DJI and SPX continues. The SPX is just 5 points below its closing high of 2276. Critical near term support is 2232. Critical near term support for the NDX is 4995. The top of the NDX Bollinger Band sits at 5108, so we may expect to see some resistance there. Europe is lower in early trade. US Futures are pointing slightly lower in the pre-market.
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