Major Economic Reports Today
Chicago PMI-9:45am Pending Home Sales-10:00am Beige Book-2:00pm
David Chojnacki - Market Technician
Though economic numbers came in as expected, equities were lower to start the day and week. There were several attempts to go positive, but only the NDX was able to move into the green area. Most of the NDX gains came on the backs of the typical 'FANG' stocks(FB, AMZN, NFLX, GOOG). By the end of the session, the NDX was able to eke out a small gain, while we had small losses in the DJIA and SPX. The NDX closed at a new high. Volume was light to start the shortened week. At the close, the DJIA fell 50.8 points, the SPX slipped 2.9 points, and the NDX added 6.2 points. Breadth was negative, 1.5 to 1, on weak volume. ROC(10)'s declined in the session, but all three major indices remain in positive territory. RSI's were little changed, with the NDXX continuing to be the strongest at 71.8. The DJIA and SPX remain just near the 60 level. All three major averages remain with their MACD above signal. The ARMS index ended the day at 1.11, just a slight negative reading. The NDX was up for the 8th straight session, recording new highs. The NDX closed at 5794, and hit an intra-day high of 5799. It closed just below its Bollinger Band top of 5796. Expect the round number of 5800 to provide some resistance. The NDX 20D-SMA is now at 5685. The SPX traded in just a 6 point range during Tuesday's session and closed at 2412, just 4 points from its recent closing high. Its 20D-SMA is now at 2394. It remains below its Bollinger Band top of 2423. The recent highs and yesterday small gain in the NDX are concentrated in a small set of equities. The IWM(iShares Russell) is witness of this, in that it has been lagging the other indices. It was off 0.79% yesterday and fell below its 50D-SMA(136.96). The VIX added 5.8% to 10.38. Near term support for the NDX is at 5775 and 5750. Near term resistance is at 5800 and 5825. Near term support for the SPX is at 2412 and 2400. Near term resistance is at 2425 and 2437. Europe is higher in early trade. US Futures are pointing higher in the pre-market.
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