Today's Technicaal Outlook - 5/10/2018
Seeking Alpha Analyst Since 2009
- Major Economic Reports Today CPI-8:30am Jobless Claims-8:30am EIA NatGas-10:30am.
- Market Summary David Chojnacki – Market Technician, StreetOne Technical Analysis.
The Market opened higher on Wednesday, as economic reports came in as expected. Any fears from the US walking away from the Iran deal did not manifest themselves in equities. We did see energy prices move higher, but they have been moving to the upside for some time now. Crude hit its highest price in 3 ½ years. The Materials sector and Financials were also strong in the session. The DJIA and SPX pushed through another technical milestone, as they ended with moderate gains. The Tech sector pushed the NDX to significant gains, as it continues to be the best performer near term. At the close, the DJIA gained 0.75%, the SPX added 0.97%, and the NDX was up 1.1%. Breadth was positive, 1.5 to 1, on light volume. ROC(10)’s advanced in the session, with all three major indices in positive territory. RSI’s moved higher, with the NDX leading the way at 61.1. The DJIA is now at 54.8 and the SPX at 56.6. All three major averages continue with their MACD above signal. The ARMS index ended the day at 0.84, a slightly bullish reading. 2 days ago we had the NDX push through its 50D-SMA and its 50% retrace of 6760. In Wednesday’s session, the DJIA and SPX moved through their 50D-SMA’s of 24422 and 2676, respectively. They are poised to move through their 50% retrace levels of DJIA(25074) and SPX(2726). Near term and short term technical strength continues to build. The NDX closed at 6893 and is now within striking distance of its March closing high of 7131. The DJIA closed at 24542, pushing through its 50D. It remains below its 50% retrace level of 25074. The SPX ended the day at 2697, and traded as high as 2701. As noted earlier it pushed through its 50D-SMA, but remains below its 50% retrace lev el of 2726. The VIX fell 8.7% to 13.42. Near term support for the NDX is at 6800 and 6760. Near term resistance is at 7000 and 7050. Near term support for the SPX is at 2676 and 2650. Near term critical resistance is at 2726 and 2750. Europe is mixed in early trade. US Futures are mixed pre-market.
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