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Today's Technical, Outlook - 6/2/2017

Major Economic Reports Today

Employment Report-8:30am International Trade-8:30am

Market Summary

David Chojnacki - Market Technician

Good ADP numbers set the stage for equities to open higher on Thursday. In addition, the news was spreading that the US would be getting out of the Paris Climate Accord. This removes a big noose around the necks of small and big businesses, and the middle class. With investors looking to make portfolio changes for the beginning of the month, the fuel for the major indices to set new records was in place. All three major indices closed with new records and finally the DJIA joined the party. The gains were moderate, but the breadth was widespread. At the close, the DJIA gained 0.65%, the SPX moved up 0.76%, and the NDX added 0.48%. Breadth was decidedly positive, 5 to 1, on average volume. ROC(10)'s advanced for all three major averages and remain in positive territory. RSI's moved higher, with the NDX moving up to 72.9. The DJIA and SPX are now in the low to mid-60's. All three major averages remain with their MACD above signal. The ARMS index ended the day at 1.11, a slightly negative reading. It was a good day for equities, as the three major averages made new closing highs and the NDX and SPX new intra-day highs. All three indices closed at their highs of the day. This time the DJIA closed at a new high of 21144, but stayed just short of its March intra-day high of 21169. It remains above its 20D-SMA of 20946. The DJIA is just below its top Bollinger Band of 21201. The SPX closed at 2430, which happens to be the top of its Bollinger Band. Its 20D-SMA is at 2398. The NDX closed at 5816 just below its BB top of 5828. Its 20D-SMA is at 5701. IWM(iShares Russell) displayed the breadth of the rally by adding 1.9% to close at 138.95. The VIX fell 5% to finish at 9.89. Near term support for the NDX is at 5800 and 5778. Near term resistance is at 5825, 5828 and 5850. Near term support for the SPX is at 2425 and 2412. Near term resistance is at 2437 and 2450. Europe is higher in early trade. US Futures are pointing higher in the pre-market.

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