Major Economic Reports Today
No major reports scheduled
David Chojnacki, Market Technician
Good Employment numbers sent equities opening higher on Friday. Once again, we did not see much participation as volume was light. The averages then traded sideways, but a last hour rally sent the averages to moderate gains. The increase was enough for the NDX and SPX to establish new closing highs. The markets continue to anticipate major events, but then have little reaction to them. On Friday, investors set their eyes on the French election, we'll see their reaction today. At the close, the DJIA was up 55.4 points, the SPX added 0.41%, and the NDX gaining 0.35%. Breadth was decidedly positive, 2.6 to 1, on light volume. RSI's remain bullish, with the NDX leading at 77. The DJIA and SPX are in the low to mid 60's. For the week, the DJIA added 0.3%, the SPX gaining 0.6%, and NDX up 1.1%. The VIX finished at 10.57, up 1%. For the week, the VIX was off just 0.25, remaining extremely low. This week will be light for economic reports. At the end of the week, we get Retail Sales numbers.
Long term, the upside bias continues, with the NDX and SPX making new closing highs last week. The DJIA has lagged somewhat, held back by the Energy sector. The major indices are comfortably above their 200 Day moving average of: DJIA-19449, SPX-2246, NDX-5028. Short term, the bias continues to the upside, with the major indices comfortably above their 50% retracement levels. Near term, the major averages moved mostly sideways on light volume last week, but held key near term technical levels. The light volume last week lends little conviction to the new highs, but technicals suggest we may see more upside. Critical near term support: SPX-2328, NDX-5353. With Macron winning French election, Europe is lower in early trade. US Futures are mixed in the pre-market.
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