Major Economic Reports Today
Initial/Continuing Claims-8:30am Leading Indicators-10:00am New Home Sales-10:00am NatGas Inv.-10:30am
David Chojnacki - Market Technician
The major indices gapped up at the open, following through on the strength of the prior session. The post- election rally continues as shares rose throughout the day. Industrials and Healthcare were the leading sectors, as investors piled in to companies that would benefit from Trump's new policies. The major averages were up significantly in the session and ended close to their highs of the day. All three major averages registered new highs. At the close, the DJIA gained 0.78%, the SPX added 0.8%, and the NDX rose 0.99%. Breadth was decidedly positive, 2 to 1, on above average volume. ROC(10)'s advanced in the session, with all three major averages in positive territory. RSI's were higher, with the NDX at 75.3, entering into over-bought levels. The DJIA and SPX ended in the mid 60's. MACD's remain below signal for the DJIA and SPX and above signal for the NDX. The ARMS index ended the day at 0.76, fairly bullish. The major indices gaped up at the open and never looked back ending with new highs. The DJIA and SPX finally broke out of the range they have been trading in since the beginning of December. The 'Bull Handle' pattern lived up to its prediction, as indices broke out to new levels. All three major indices are comfortably above their 20D-SMA's of: DJIA-19874, SPX-2267, and NDX- 5011. As would be expected, the momentum to the upside has strengthened. The Fibonacci extended near term targets are NDX- 5198 and SPX- 2348. IWM(iShares Russell 2000) small-caps was up nearly 1% for the second straight session. It closed at 137.21. It remains just short of its December closing high of 138.31. The VIX closed with a 10 handle, at 10.81, the lowest since May of 2014. Near term support for the NDX is at 5125 and 5100. Near term resistance is at 5175 and 5198. Near term support for the SPX is at 2288 and 2276. Near term resistance is at 2300 and 2325. Europe is up in early trade. US Futures are pointing slightly higher in the pre-market.
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