Major Economic Reports Today
Case-Shiller Index-9:00am FHFA Housing Price Index-9:00am New Home Sales-10:00am Consumer Confidence-10:00am
David Chojnacki - Market Technician
The market opened the day and the week on a strong note to the upside. We can thank the France elections and news from Washington for equities gapping up on Monday. The major indices saw most sectors turning higher during the day, but especially a strong Financial sector. Talk of Tax cuts was a real boost to Banks. The averages were near their highs early in the session and trended sideways, to slightly higher, for the remainder of the session. The NDX broke out to new highs, and all three major indices had significant gains at the final bell. At the close, the DJIA and SPX were up 1%, and the NDX gained 1.2%. Breadth was decidedly positive, 2 to 1, on above average volume. ROC(10)'s advanced, with the DJIA and SPX crossing into positive territory, joining the NDX. RSI's spiked higher, with the NDX leading at 69.7. The DJIA and SPX ended in the high 50's. All three major averages had their MACD cross above signal, a key near term technical indicator. The ARMS index ended the day at 0.78, a bullish reading. Monday was a strong session for equities, with the NDX closing at a new high of 5508 and an intra-day high of 5513. It closed above its upper Bollinger Band of 5481 and remains the strongest of the indices near term. The DJIA and SPX broke above their 20 and 50D moving averages of: DJIA: 20D-20620, 50D-20717, SPX-20D-2353, 50D-2358. They both met resistance yesterday at their Bollinger Band tops of DJIA- 20794 and SPX-2374. The SPX closed right at that top. Yesterday's action, took a big step in attempting to turn the near term technical bias to the upside for the DJIA and SPX. The VIX spiked 25.9% to finish at 10.84. We haven't seen it close at this level since February. Near term support for the NDX is at 5481 and 5475. Near term resistance is at 5500 and 5525. Near term support for the SPX is at 2362, 2358, and 2353. Near term resistance is at 2375 and 2388. Europe is higher in early trade, and US Futures are pointing higher.
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