The Market gapped to the upside once again at the open, but then did not exhibit the strength we saw in the prior session .By the end of the session, prices moved down close to the lows of the session. At the close, the DJIA was up just 2 points, the S&P500 up 2.6 points, and the Nasdaq100 up just 4.8. Breadth was good again, but volume remained weak. All three indices remained above their 50D-SMA. The S&P and DJIA closed near the top of short term range again, while the Nasdaq100 is somewhat technically stronger. The indices remain above important support levels, but also near a congestion area . The S&P500 closed right in tough resistance range of 1150-1120. The S&P500 remains just above its 2009 close, while the other two indices are just below. Next several sessions will be crucial to determine if we break out through here or settle into a range. We would like to move through here on good volume for further upside. The Financials (XLF), closed up .05 to 14.77. Support now at 14.75, 14.60, 14.50, 14.40, 14.30, 14.15, and 14.00. Resistance now at 15.00 and 15.30. GOLD(GLD) broke out and held above 109.80, closing at 111.02 up 1.4%. Next resistance at 113-113.50 area. The VIX down another 1% to 19.07.
Long term, we remain just above 50% retracement of recent correction. The Market is still working through a congestion area. Short term, bias has reversed to the upside. Near term, we hit resistance in the last session again and pulled back. 1115-1120 is a tough resistance area for the S&P500. Today’s futures(at 8:15am) are flat versus fair value. Economic growth indicators and U.S. Treasury funding remain the key Market movers.
Major Economic Reports Today:
Challenger Job Report-7:30am ADP Employment-8:15am ISM Services-10:00am
Crude Inventories-10:30am Fed’s Beige Book-2:00pm
MAJOR INDICES- Short term support and resistance levels.
DJIA-(close 10405) SP500-(close 1118) N100-(close 1851)
S R S R S R
10355 10500 1115 1120 1850 1863
10336 10540 1109 1130 1845 1875
10304 10626 1105 1135 1840 1880
10298 10650 1101 1142 1830 1900
10200 10725 1100 1143 1820
10150 1089 1150 1812
10000 1080 1160 1810
9962 1070 1806
9925 1060 1800
In the VIX (S&P CBOE Volatility), options have been active in the March line. March 20 straddles have been actively bought, with these investors looking for a near term increase in the VIX. Sizable put calendars were also purchased (selling March/buying April) in the March/April 20 puts. In the SMH (Semiconductors HOLDR), we saw buyers of calls and sellers of puts in the April 25 put / 28 call risk reversals in notable size, and separately there were buyers of March 27 calls in size, delta neutral. We saw buyers of calls in SRS (ProShares Ultra Short Real Estate) in notable size, at least 25,000 contracts of the April 7 calls. These investors are making a near term bearish call on the sector.
GLD(SPDR Gold)-Broke out of range. A buy above 109.80. Resistance at 113-113.50.
IWM-(Ishares Russell 2000) Closed at 64.75. Resistance remains at 64.85. TNA(Direxion Small Cap 3X), Closed at 47.39. Resistance remains at 48.00.
QQQQ(Powershares-Nasdaq100)-Closed at 45.55, right near 45.50 resistance. Hitting some headwinds here. Resistance remains near 45.50. QLD(Nasdaq100 2X leverage)Closed 58.42. Resistance remains near 58.60.
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