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Today's Technical Outlook- 6/26/2017


Market Summary David Chojnacki, Market Technician, StreetOne Technical Analysis

The market opened to the downside on Friday, but decent Housing numbers helped to reverse direction.   The action was choppy during the session and we saw Techs seeing inflows again and helping to push the NDX higher.  Energy issues were a help to the SPX.  By the final bell the major averages were mixed, after a sell-off in the last 2 hours.  Volume was higher, as Friday was a Russell rebalance.  At the close, the DJIA was down 2.5 points, the SPX inched up 3.8 points, and the NDX gained 0.4%. Breadth was positive, 2 to 1, on above average volume, which was a result of the Russell rebalance.  RSI’s were little changed with the DJIA continuing to lead at 62.7.  The SPX is at 58.7 and the NDX at 56.8.  For the week, the DJIA added 10 points, the SPX gaining just 5 points, and the NDX moving up 2.1%.  The VIX fell 4.3% on Friday to 10.02. It fell 3.4% for the week.  This week we get more Housing Data, Consume Confidence, GDP and Chicago PMI.  Look for investors to monitor status of proposed Health bill.      

Trading Trends

Long term, the upside bias continues, with the DJIA and SPX making new highs early in week. They both slid back somewhat in the latter part of the week.  The NDX remains off its highs, but attempted to turn-around last week.  All three major indices remain above long term 200 day moving average: DJIA- 19895, SPX- 2286, NDX-5194.  Short term, the bias remains to the upside.  The averages are comfortably above 50% retracement levels.  Near term, the NDX and SPX saw their MACD fall below signal.  This brings some caution near term, however, all three major indices remain comfortably above critical near term support of: DJIA-20553, SPX-2352, NDX-5568.  50D-SMA’s have been providing good near term support. Europe is up in early trade and US Futures are moderately higher in the pre-market.  

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.