Today's Technical Outlook - 4/9/2018
Seeking Alpha Analyst Since 2009
- Major Economic Reports Today No reports scheduled.
- Market Summary David Chojnacki, Market Technician.
Trade fears had the market opening significantly lower on Friday. The Employment report was mixed, with new hires lower than expected, but a decent increase in wages. Equities continued to slide through the session, and the selling accelerated on comments from the FED Chair. A last hour rally kept the major indices from closing at their lows. All three major averages ended the day with significant losses. At the close on Friday, the DJIA was down 2.3%, the SPX fell 2.1%, and the NDX gave up 2.4%. Breadth was decidedly negative, 3.8 to 1, on average volume. RSI’s moved lower with the DJIA leading at 43.6. The SPX ended at 41.8 and the NDX at 40.2. The ARMS index ended at 2.9, a very bearish reading. For the week, the DJIA slipped 0.7%, the SPX fell 1.3%, and the NDX was down 2.2%. The VIX spiked 13.4% on Friday to 21.49. For the week, the VIX was up 7.6%. This week will be fairly light for economic reports, but we do get CPI and PPI numbers and Consumer Sentiment.
Long term, technicals were challenged again last week as the SPX and DJIA traded near their 200D-SMA. The DJIA and SPX have spent the last 10 sessions trading near their 200D-SMA’s of 23478 and 2593, respectively. The SPX and NDX are trading below their 1yr. Trend-lines of 2612 and 6500, respectively. The DJIA is above its 1yr. trend-line of 23800. Short term, the bias remains to the downside. All three major indices are well below their 50D-SMA’s: DJIA-24858, SPX-2709, NDX-6767. Near term technicals remain weak, however, the RSI’s for all 3 major indices have been rising since 3/23. We also saw the DJIA MACD cross above signal. The indices have spent the last 10 trading sessions looking like they want to build a base. Europe markets are mixed in early trade. US Futures are higher pre-market.
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