Friday was the last trading day of 2017 and investors were stepping in and making last minutes changes to their portfolios. Volume picked up on Friday and equities displayed some initial strength. As the session wore on, sellers took over and the major averages ended at their lows of the day. The losses were moderate as the NDX and SPX neared their first lines of support. At the close, the DJIA was down 0.48%, the SPX fell 0.5%, and the NDX gave 0.7%. Breadth was negative, 1.5 to 1, on below average volume. RSI’s pulled back some, dropping the leading DJIA to 67.8. The NDX fell to 51.2 and the SPX to 60.9. All three remain in bullish territory. The ARMS Index ended at 1.46, reflecting the weakness at the close. The consolidation in the major averages continued in the last week of the year. For the week: DJIA gave up 0.1%, the SPX fell 0.3%, and the NDX lost 1%. The VIX gained 11.5% for the week, ending at 11.04. We get a plethora of economic reports this week, including FOMC minutes and Employment Report.
Long term, the upside bias continues. The major averages consolidated last week as prices pulled back slightly. The longer trend continues, as the major indices are comfortably above their 200D-SMA’s: DJIA-22109, SPX-2482, NDX-5900. 2017 gains:DJIA-25%, NDX-31.5%, SPX-19.4%. Our target for the SPX remains at 2750. Short term, the major averages continue their rally. The major indices are comfortably above 6 month lows. Near term, we had the major averages cross below their MACD signal. The NDX and SPX were testing their 20D-SMA‘s of 6397 and 2664, respectively. Critical near term support remains at: DJIA- 24101, SPX-2624, NDX-6234. Europe is lower in early trade. US Futures are pointing higher pre-market.
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TODAY’S DATE, UNLESS OTHERWISE INDICATED
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