Major Economic Reports Today
No major reports scheduled
David Chojnacki, Market Technician
Equities opened higher on Friday as investors were following through on the prior session's record setting strength. Weaker than expected Michigan Sentiment numbers (95.7), did little to hold back the major indices. The major averages traded nearly sideways through the PM session, but held on to their moderate gains to finish at new highs. Breadth and volume was somewhat stronger giving conviction to the session. At the close, the DJIA was up 0.48%, the SPX gained 0.36%, and the NDX adding 0.38%. Breadth was decidedly positive, 2.7 to 1, on average volume. ROC(10's) advanced in the session and continued in positive territory. The ARMS Index ended at 1.13, just slightly bearish at the close. For the week, the DJIA was up 0.9%, the SPX added 0.8%, and the NDX was up 1.2%. The DJIA and SPX tried, once again, to break-out of the 9 week trading range. The VIX was little changed for the week, ending at 10.85. Volatility remains extremely low. We get PPI, CPI, Retail Sales and Housing numbers this week.
Long term, the upside bias continues as the major averages move to new record highs this week. Volume during the week was below average, lending little conviction to the break-out, however, there was some pickup in volume on Friday. The major indices remain comfortably above their longer term 20WK.-SMA's: DJIA-19216, SPX- 2215, NDX- 4916. Short term, the bias continues to the upside as the averages remain well above their 50% retracement levels. Near term, the recent highs continue to lend credence to more upside in the near term. Critical near term support for the SPX is 2233 and 5086 for the NDX. IWM(Russell 2000 small-caps) has still not participated in new highs. We'll look for confirmation this week. Europe is moderately higher in early trade and US Futures pointing higher.
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