Despite a better than expected GDP number and decent Claim Numbers, equities opened to the downside on Thursday. Once again, Techs were being hit and helping to drive the NDX lower. It looked like there may have been some rotation in process as we end the second quarter. Financials and Energy issues were seeing some inflows, as other sectors were sold. The major indices bottomed in the early PM and recovered some of their losses, but the NDX managed to close with significant losses. The DJIA and SPX closed with moderate losses. The trade has been choppy in the last three sessions. At the close, the DJIA fell 0.78%, the SPX declined 0.86%, and the NDX gave up 1.7%. Breadth was decidedly negative, 2.3 to 1, on average volume. ROC(10)’s declined across the board, with all three major indices falling into negative territory. RSI’s moved higher, with the DJIA continuing to be the leader at 51.8. The NDX and SPX fell back into the 40’s. All three major indices remain with their MACD below signal. The ARMS index ended the day at 0.62, a fairly bullish reading. Yesterday’s trade continues this week’s choppy trade, with the indices gyrating around moving averages. The volume also picked up in Thursday’s session. The NDX was the big loser and fell back below its 50D-SMA of 5699. It closed at 5633, just above its lower Bollinger band of 5627. The DJIA fell through its 20D-SMA of 21324, closing at 21287. The SPX traded to just below its 50D-SMA of 2408 in the session, but then reversed and moved higher. It appeared this also keyed the other averages to move higher. The SPX ended below its 20D-SMA of 2434. The VIX spiked 14.2% to end at 11.46. It traded as high as 15.16. Near term support for the NDX is at 5627 and 5600. Near term resistance is at 5675 and 5699. Near term support for the SPX is at 2408 and 2400. Near term resistance is at 2425 and 2434. Europe is moderately higher in early trade. US Futures are pointing higher in the pre-market.
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