The Market opened weak, but by late morning had moved into positive territory, and increased the gains into the close. At the close, the DJIA was up .8%, the S&P500 up 7 points, and the Nasdaq100 up 12 points. The DJIA and the Nadaq100 closed just above their 50D-SMA, with the S&P500 just below. The indices have now put some distance from important support levels and their 200D-EMA. We’ve now retraced better then 50% of the recent correction by all three major indices. Volume in the recent session was weak, making the move lack conviction. Over all, the technical landscape has improved the last few sessions. The Financials (XLF), moved up nearly 1% to 14.38. Strong resistance remains between 14.40 and 14.50. Support remains at 14.30, 14.15, 14.00, 13.75 and 13.50. Resistance now at 14.40, 14.50 and 14.60. GOLD(GLD) closed at 109.98 and held the 109.80 level. If we hold here, it becomes a buy with short term resistance near 113.00. The VIX closed down 2.3% to 21.72.
Long term, we’ve retraced over 50% of correction and if we can hold, upward bias will resume. Short term, bias has reversed to the upside, but we are right near congestion area. Near term, bias has been to the upside on weak volume. We are in a congestion area and may move sideways before resuming a more important move. Options expire today and may impact volatility. Today’s futures(at 8:15am) are down slightly versus fair value. Economic growth indicators and U.S. Treasury funding have become the new key Market movers.
Major Economic Reports Today:
MAJOR INDICES- Short term support and resistance levels.
DJIA-(close 10392) SP500-(close 1106) N100-(close 1823)
S R S R S R
10355 10500 1103 1108 1820 1830
10272 10540 1100 1115 1812 1840
10221 10544 1098 1120 1800 1845
10200 10650 1097 1130 1798 1850
10185 10725 1091 1135 1790 1864
10150 1086 1143 1783
10000 1085 1150 1775
9925 1080 1758
9900 1070 1742
QQQQ(Powershares Nasdaq100)-Closed 44.85. Remains a buy if we can hold above 44.60. Similar trade is QLD(2X leverage)- Closed -56.69. Remains buy above 56.50.
IBB-(Ishares Biotech)-Pulled back below 85.50 to close at 85.27. A buy or add to position only above 85.50. Resistance at 85.50, and 86.00-86.20.
UUP(Powershares U.S. Dollar)- Trading in range(23.40-23.70). Breakout above 23.70 would take short term move to 24.00, with next resistance at 24.50. Conversely, the UDN(Powershares Dollar Bearish) would breakdown below 26.50, with next support near 26.00.
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