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Today's Technical Outlook - 2/17/2017

Major Economic Reports Today

Leading Indicators-10:00am

Market Summary

David Chojnacki - Market Technician

Investors were delivered with decent economic reports yesterday morning, as equities reacted by opening slightly higher. The major indices couldn't hold those gains and quickly reversed to the downside. After several sessions of new highs equities were due for a breather. Most of the PM session was flat as the averages traded sideways into the close. By the final bell, the major indices were little changed. The DJIA eked out a small gain, which lead to new highs. The NDX hit a new intra-day high, but closed just below the prior session's close. At the close, the DJIA inched up 7.9 points, the SPX fell 2 points, and the NDX slipped 1.75 points. Breadth was negative, 1.3 to 1, on average volume. ROC(10)'s were mixed in the session, with the SPX the only index declining. All three remain in positive territory. RSI's were little changed, with the NDX continuing to be the strongest at 81.3. All three major averages continue at over-bought levels. All three major indices continue with their MACD above signal. The ARMS index ended the day at 1.29, a slightly bearish reading. The major indices were due for a slight pause after the string of record setting highs. The DJIA eked out new highs, while the other two major indices held nearly steady. All three major averages developed a 'Doji' in the session, which may be indicating a brief reversal. This will manifest itself in the next few sessions. The NDX, which fell 1.75 points, managed to hold onto and close right at the 5300 level. It traded as high as 5316 in the session. Our new short term target for the NDX is 5362. The SPX continues well above its 20D-SMA of 2299 and its short term target is now 2382. The VIX fell 1.7% to finish at 11.76. Near term support for the NDX is at 5300 and 5275. Near term resistance is at 5316 and 5325. Near term support for the SPX is at 2325 and 2312. Near term resistance is at 2348-50 and 2362. Europe is mixed in early trade. US Futures are pointing lower in the pre-market.

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