Major Economic Reports Today ADP Employment Report-8:15am International Trade-8:30am Productivity and Costs-8:30am EIA Oil Report-10:30am Beige Book-2:00pm.
Market Summary David Chojnacki – Market Technician, StreetOne Technical Analysis.
Equities opened slightly higher on Tuesday. Factory Orders were just slightly lower than forecast, but had little impact on the averages. The major indices traded in a narrow range, moving into negative territory late morning and then back into the black in the PM. The 10YR held relatively flat, ending at 2.88. There was still some concern over tariffs and investors are waiting for Friday’s Employment report. By the final bell, equities finished with minor gains. The NDX was the strongest of the big three. At the close, the DJIA was up 9.3 points, the SPX added 0.26%, and the NDX was up 0.46%. Breadth was decidedly positive, 2 to 1, on below average volume. ROC(10)’s advanced in the session, with the SPX crossing back into positive territory, joining the NDX. The DJIA remains in negative territory. RSI’s inched higher, with the NDX leading at 57.4. The DJIA ended at 47.2 and the SPX at 50.9. The DJIA and SPX remain with their MACD below signal. The NDX continues to be above signal. The ARMS index ended the day at 1.21, a slightly bearish reading. It was a rather dull day for equities, with volume reflecting the anemic action. The DJIA and SPX continue to reflect some near term technical weakness. They both remain below their 50D-SMA’s of 25281 and 2737, respectively. The SPX inched above its 50% retracement of 2726, closing at 2728. The SPX remains above its 20D-SMA of 2699. The DJIA closed at 24884, just slightly above its 20D-SMA of 24875. It remains just below its 50% retrace level of 25238. The NDX continues to be the best performer near term. It closed at 6770, just above its 61% retrace level of 6748. It continues to hold above other near term technical levels. The VIX fell 1.9% to finish at 18.36. Near term support for the NDX is at 6900 and 6850. Near term resistance is at 6950 and 7000. Near term support for the SPX is at 2699 and 2675. Near term resistance is at 2737 and 2760. Europe is lower in early trade. US Futures are pointing significantly lower in the pre-market.
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