Major Economic Reports Today
Initial/Continuing Claims- 8:30am FHFA Housing Price Index-9:00am NatGas-10:30am Crude Inv.-11:00am
David Chojnacki - Market Technician
The market opened lower yesterday morning, but moved higher after good Housing Numbers. The rise didn't last long and equities languished, waiting for the FOMC Minutes at 2PM. The major averages slipped a bit after the Minutes, even though there no surprises in the Minutes. The Minutes suggested that the FED is still looking for 3 rate hikes in 2017. Equities then slid sideways into the close ending mixed in the session. Small gains for the DJIA and NDX pushed them to new record highs once again. At the close, the DJIA was up 32.6 points, the SPX slipped 2.5 points, and the NDX inched up 1.4 points. Breadth was slightly negative, 1.3 to 1, on slightly below average volume. ROC(10)'s declined in the session and remain in positive territory. RSI's were mixed and remain at over-bought levels. The NDX continues to be the strongest at 84.7. All three major indices continue with their MACD above signal. The ARMS index ended the day at 1.41, a bearish level. It was a ho-hum day for equities, but as noted the DJIA and NDX moved to new highs. A slower day may be just what the market needs to digest some of the recent gains and prepare for new highs. Once again, the averages are looking over-extended, as they are near the top of their Bollinger Bands. BB Tops are: DJIA-20831, NDX-5365, and SPX-2370. We continue to see near term targets for the NDX and SPX to be 5362 and 2382, respectively. Critical near term support is 2312 for the SPX and 5216 for the NDX. IWM(small-caps) fell 0.44% to end the day at 139.58. The VIX added 1.4% to end at 11.74. This was the second straight up day for the VIX, but volatility remains extremely low. Near term support for the NDX is at 5350, 5325 and 5300. Near term resistance is at 5362 and 5375. Near term support for the SPX is at 2362, 2350 and 2337. Near term resistance is at 2375 and 2382. Europe is mixed in early trade. US Futures are also mixed before the bell.
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