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Today's Technical Outlook - 4/27/2018

Summary

Major Economic Reports Today GDP-8:30am Employment Cost Index-8:30am Consumer Sentiment-10:00am.

Market Summary David Chojnacki – Market Technician, StreetOne Technical Analysis.

Equities opened higher on Thursday on good economic numbers and strong earnings by FB. Claims Numbers and Durable Goods reported better than expected. The major averages moved higher through the day and only a small sell-off in the last hour left them off their highs. FB had a big day moving up 9% and dragging the beaten down FANG stocks with it. FNG(Advisor Shares New Tech and Media ETF) was up 2.78% on the day. The major indices ended the day with significant gains. At the close, the DJIA moved up 0.99%, the SPX added 1%, and the NDX gained 2%. Breadth was decidedly positive, 2 to 1, on below average volume. ROC(10)’s were mixed with the DJIA declining and the NDX and SPX advancing. The DJIA and NDX remain in negative territory, while the SPX crossed back into positive territory. RSI’s moved higher with the SPX leading at 49.9. The DJIA ended at 48.6 and the NDX at 49.4. The DJIA and NDX had their MACD cross back above signal. The SPX remained above signal. The ARMS index ended the day at 1.06, reflecting the last hour weakness. Thursday was a good snapback for the major indices, especially the beaten down NDX. Volume was again missing on an ‘up’ day, lending little conviction to the move. All three major indices remain below their 50% retrace levels: DJIA-25074, NDX-6760, SPX-2726. The DJIA ended the session at 24322, crossing above its 20D-SMA of 24300. It remains below its 50D-SMA of 24592. The SPX closed at 2666. It moved above its 20D-SMA of 2652. The SPX remains below its 50D-SMA of 2688. The NDX ended at 6649, crossing above its 20D-SMA of 6603. It continues below its 50D-SMA of 6748. After the bell yesterday, AMZN and MSFT both beat earnings expectations. The VIX fell 8.9% to 16.24. Near term support for the NDX is at 6603 and 6550. Near term resistance is at 6700, 6748 and 6760. Near term support for the SPX is at 2652 and 2600. Near term critical resistance is at 2688 and 2700. Europe is mixed in early trading. US Futures are mixed pre-market. 

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