Major Economic Reports Today
Employment Report-8:30am Factory Orders-10:00am ISM Services-10:00am
David Chojnacki - Market Technician
Slightly better than expected Initial Claims Numbers, did little to help equities yesterday at the open. While FB put up decent numbers, investors were prepared to sell the news. This left equities slightly lower at the open and looking for direction. The major averages traded in a very narrow and choppy range through the morning hours. Several attempts to move higher in the PM failed and the averages lumbered into the close little changed and mixed. At the close, the DJIA slipped 6 points, the SPX inched up 1.3 points, and the NDX fell 4.9 points. Breadth was slightly negative, 1.2 to 1, on below average volume. ROC(10)'s advanced for the DJIA and SPX and declined for the NDX. All three remain in positive territory. RSI's hardly changed and the NDX remains the strongest at 67.2. The DJIA and SPX remain in the 50's. The DJIA and SPX MACD continue below signal. The NDX MACD remains above signal. The ARMS index ended the day at 0.99, a neutral reading. Yesterday's session was about as dull as they get. The major indices traded in a narrow but choppy range, with little change. The SPX traded in just a 12 point range the entire session. Even headline earnings news, regarding FB, couldn't shake the market out of its doldrums. The DJIA , which fell a few points, remained below its 20D-SMA-of 19905. The NDX, continues to be the strongest index near term. It continues well above its 20D-SMA of 5079 and is closed just 21 points below its recent closing high of 5168. The SPX continues to find support near its 20D-SMA(2276) and closed just 4 points above. AMZN missed on the top line and traders beat it down after hours. It fell 4.5% in late trading. The VIX added 1% to 11.93. Near term support for the NDX is at 5125 and 5100. Near term resistance is at 5150, 5168, 5172 and 5188. Near term support for the SPX is at 2276, 2275 and 2250. Near term resistance is at 2288 and 2300. Europe is moderately higher in early trade. US Futures are pointing higher pre-market.
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