Major Economic Reports Today
Jobless Claims-8:30am Productivity and Costs-8:30am Factory Orders-10:00am NatGas-10:30am
David Chojnacki - Market Technician
Equities opened lower on Wednesday, despite Economic reports that beat expectations. The early focus was on AAPL, which reported disappointing sales, and was trading lower. By the end of the day AAPL recovered and was only down 0.31% to 147.05. Prices reversed late morning, trading in a narrow range, waiting for the FOMC announcement. As expected, there was no change in rates and no change in philosophy. The NDX fell for the first time in 5 sessions, ending its run-up to new highs. The DJIA was the only major index with a small gain, while the SPX registered a small loss. At the close, the DJIA was up 8 points, the SPX fell 3 points, and the NDX slipped 18.9 points. Breadth was negative, 1.5 to 1, on below average volume. ROC(10)'s were mixed with the DJIA and SPX advancing and the NDX declining. All three remained in positive territory. RSI's were lower for the NDX and SPX, while slightly rising for the DJIA. The NDX continues to lead with an RSI of 75.2. All three major averages remain with their MACD above signal. The ARMS index ended the day at 0.95, a fairly neutral indication. The NDX ended its string of new highs, partly because of AAPL and GILD. It remains technically strong and just below its upper Bollinger Band of 5661. Critical near term support remains at 5353 and our near term target is 5667. The SPX found support t 2388, a near term support level. The SPX got close to its intra-day record high of 2400 last week, but has since pulled back slightly. Near term critical support remains at 2328. The DJIA remains within 1% of its all-time high. GLD(SPDR Gold) fell a huge 1.4% to 117.98, unable to hold its 200D-SMA. The VIX added 0.09 points to finish at 10.68. Near term support for the NDX is at 5625 and 5600. Near term resistance is at 5650 and 5667. Near term support for the SPX is at 2388 and 2375. Near term resistance is at 2395 and 2400. Europe is significantly higher in early trade. US Futures are pointing higher in the pre-market.
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