Major Economic Reports Today
Emp. Cost Index-8:30am Chicago PMI-9:45am Consumer Confidence-10:00am
David Chojnacki - Market Technician
The market opened lower yesterday, as Europe and Energy prices were weak. All three major indices fell through the morning hours and we didn't see any support until just before noon. Equities moved to the upside through the PM hours and a final push in the last hour, still left the major indices well off their lows. The averages ended with moderate losses with Energy and Materials leading the way. At the close, the DJIA and SPX fell 0.6%, and the NDX gave up 0.75%. Breadth was decidedly negative, 2.3 to 1, on average volume. ROC(10)'s declined in the session, with all three major averages remaining in positive territory. RSI's fell moving the NDX below the 70 level to 67. The DJIA and SPX are now in the mid 50's. The DJIA and SPX MACD fell back below signal after just moving above in the prior 2 sessions. The NDX MACD remains above signal. The ARMS index ended the day at 1.5, moderately bearish. It was the biggest loss for equities since December and the worst this year. All 3 major indices developed a 'Hanging Man' candlestick in the session, which is an indicator of a 'topping ' formation. The next few sessions will tell if this is true. Sectors that had been strong in the Trump rally, Energy and Materials, were the weakest on the day. The DJIA remains above its 20D-SMA of 19903. The NDX, which has been the strongest index near term, was the biggest loser. It remains comfortably above its 20D-SMA of 5044 and critical near term support of 4995. The SPX managed to close above its 20D(2273) after trading as low as 2268 in the session. The SPX pulled back within the range of the 'Bull Handle'. The VIX spiked up 12.2% to 11.88. It was as high as 12.9 in the session. Near term support for the NDX is at 5125 and 5100. Near term resistance is at 5150 and 5162. Near term support for the SPX is at 2275, 2273 and 2250. Near term resistance is at 2300 and 2325. Europe is slightly higher in early trade. US Futures are pointing lower in the pre-market.
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