Major Economic Reports Today
Export/Import Prices-8:30am Mich Sentiment-10:00am
David Chojnacki - Market Technician
Initial Claims were better than expected and strength in European bourses helped push US markets higher at the open. News from the White House regarding coming Tax Reform sparked equities to explode to the upside. The major averages moved higher through the morning hours and prices didn't level off until the European markets closed. Equities traded sideways through the PM hours and ended the session with moderate gains. At the close, the DJIA added 0.59%, the SPX moved up 0.58%, and the NDX gained 0.3%. Breadth was positive, 2 to 1, on below average volume. ROC(10)'s advanced in the session, with the DJIA and SPX moving into positive territory. RSI's were moved higher, with the NDX remaining the strongest at 74.3, a slightly over-bought condition. The DJIA and SPX are now in the mid 60's. The DJIA and SPX had their MACD cross above signal, joining the NDX. The ARMS index ended the day at 0.83, a slightly bullish reading. The DJIA and SPX once again moved out of their recent range to new highs. They closed at record highs of 20172 and 2307, respectively. The NDX also catapulted to new highs, ending at 5212. The DJIA and SPX had two key indicators, ROC(10's) and MACD's turn positive. The drawback to the session was below average volume, which did little to confirm or give conviction to the record highs. Regardless, new highs are always a positive technical sign. The major averages are comfortably above their 20D-SMA's of: DJIA-19949, SPX- 2283, and NDX-5121. IWM(Russell 2000) was up strong 1.4%, to 136.90. It remains below its record high close of 138.31. The VIX was down 5% to 10.88. Volatility continues extremely low. Near term support for the NDX is at 5200 and 5188. Near term resistance is at 5225 and 5250. Near term support for the SPX is at 2300 and 2288. Near term resistance is at 2312 and 2325. Europe is mixed in early trade. US Futures are pointing higher pre-market.
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