The Market gapped up moderately at the open, held its levels and displayed renewed strength into the close. At the closing bell, the DJIA was up 1.6%, the S&P500 up 1.7%, and the Nasdaq100 up 1.2%. All three indices moved above their 20D-EMA and closed very near their 50D-EMA. All three are also back above their 20 week-EMA. The indices have now put some distance from important support levels and their 200D-EMA. With a cross in the MACD of the indices and recent strength, they are showing signs of wanting to reverse the recent correction. The DJIA has retraced 44% of its recent correction, the S&P500- 40%, and the Nasdaq100- 42%. The Financials (XLF), moved up 2% to 14.24 and back into its recent trading range. Support is now at 14.15, 14.00, 13.75 and 13.50. Resistance now at 14.30, 14.40, 14.50 and 14.60. GOLD(GLD) gapped up and finished with a nice gain to 109.62. It met resistance near 109.80, which it needs to get through to be a buy. The VIX closed down 1.9% to 22.28.
Long term, we remain in a correction, below ten month trading channel and 50% retracement levels in the DJIA and S&P500. Short term, bias remains to the downside, but signals of a reversal beginning to manifest themselves. Recent strength and bouncing off important support levels indicates some near term strength. Today’s futures(at 8:15am) are up slightly versus fair value. Economic growth indicators and U.S. Treasury funding have become the new key Market movers.
Major Economic Reports Today:
Housing Starts/Building Permits-8:30am Import/Export Prices-8:30am
Capacity Util./Industrial Production-9:15am FOMC Minutes-2:00pm
MAJOR INDICES- Short term support and resistance levels.
DJIA-(close 10268) SP500-(close 1094) N-100-(close 1802)
S R S R S R
10268 10355 1089 1097 1800 1820
10203 10500 1085 1100 1797 1830
10200 10540 1081 1103 1787 1840
10150 10650 1080 1115 1775 1845
10139 1070 1120 1774 1850
10000 1050 1130 1758
9925 1048 1135 1742
9850 1043 1735
9819 1035 1730
9786 1030 1720
XLK(SPDR Technology)- Closed-21.68. A buy if we get over 22.00.
IBB-(Ishares Biotech)-Closed up to 84.47. Remains buy over 83.20, meeting some resistance near 85.00.
FAZ(Financials Bear-3X)- Broke down from recent range but good support near 19.00-19.10. QID(Proshares Q’s ultra short)-Broke down from recent range. A buy if we get back above 20.40. UUP(Powershares U.S. Dollar)- Remains in range:(23.40-23.70). The UUP continues to meet resistance near 23.70 area. Conversely, the UDN(Powershares Dollar Bearish) has support near 26.50, has moved above its 10D-EMA, but remains below its 200D-EMA.
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