The Market opened slightly to the upside, then traded lower and remained in the red for most of the session, but little changed at the closing bell. The DJIA was off 18 points, the S&P500 off 1 and the Nasdaq100 off 5 points. Volume was weak. Little change to the technical landscape in this session, but recent bounce looks weak. Some signs of pulling back and testing 1080 on the S&P500. All three indices remain just near their 50D-SMA. The indices remain above some important support levels and their 200D-EMA. We’ve also retraced better then 50% of the recent correction in all three major indices. We remain near a congestion area. The Russell 2000, continued displaying strength versus the other indices, with a finish just slightly to the upside. This could be foretelling of a more concentrated shift to secondary issues. The Financials (XLF), remained strong, gaining 1.3% to 14.65. Support now at 14.60, 14.50, 14.40, 14.30, 14.15, and 14.00. Resistance now at 14.75, and 15.00. GOLD(GLD) moved lower again to 109.07. Having difficult time holding 109.80, a buy signal, but is maintaining support near 109.00 which is also 50D-SMA. The VIX closed off slightly to 19.94.
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 experience additional resistance. Today’s futures(at 8:15am) are slightly lower versus fair value. Economic growth indicators and U.S. Treasury funding have become the new key Market movers.
Major Economic Reports Today:
Case-Shiller Index-9:00am Consumer Confidence-10:00am
MAJOR INDICES- Short term support and resistance levels.
DJIA-(close 10383) SP500-(close 1108) N100-(close 1817)
S R S R S R
10355 10500 1108 1115 1812 1820
10283 10540 1103 1120 1801 1830
10270 10578 1100 1130 1800 1840
10260 10650 1099 1131 1799 1845
10200 10725 1095 1135 1797 1850
10150 1085 1143 1783 1867
10000 1080 1150 1775
9941 1070 1758
9925 1059 1742
XLF(SPDR Financials-State Street)-A buy if it can hold the 14.50 level. Similar trade is the UYG(Financial ProShares-2X leverage)- A buy above 5.75.
IWM(Ishares Russell 2000)-Remains a buy over 62.50. There is resistance near 63.50 and 64.85.
QQQQ(Powershares Nasdaq100)-Closed 44.74. Remains a buy if we can hold above 44.60. Similar trade is QLD(2X leverage)- Closed -56.38. A buy above 56.50.
UUP(Powershares U.S. Dollar)- Closed at 23.68. Moving back into recent range of 23.40-23.70. The UDN(Powershares Dollar Bearish) has been displaying good support at 26.50.
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