The Market traded flat throughout the session and closed barely changed on Friday. At the close, the DJIA was up 13 points, the S&P500 of .25 point, and the Nasdaq100 up .6 of a point. For the week, we had small gains to the upside with the DJIA gaining .5%, the S&P500 up .9%, and the Nasdaq100 gaining 1.9%. The Nasdaq100 did make a new high on Friday, along with the DOW Transports. Both the Nasdaq100 and the Transports are overbought short term. 1920 remains a longer term congestion area for the Nasdaq100 and we should expect some pause near this level. Similarly, it may take some time to get through 1150 in the S&P500. While the DJIA is somewhat lagging the other two major indices, its 20D-SMA has recently crossed above its 50D-SMA and other technicals look strong enough to support at least a test of its January high of 10725. The Financials (NYSEARCA:XLF), finally paused in its march to the upside with a slight pullback of .06 to close at 15.54. It has pulled back twice now intra day from the 15.75 area. Support remains at 15.40, 15.30, 15.10, 15.00, 14.75, and 14.60. Resistance at 15.75 and 16.00. GOLD(NYSEARCA:GLD) continued its weakness on Friday losing .65 and closing at 107.95. It remains below its 20 and 50DMA’s and may test the 104.50 to 106 area. The VIX lost 2.6% to 17.52, moving close to its recent closing low of 17.42.
Long term, technicals remain positive and intact. Short term, we continue to test January highs of the DJIA and S&P500, while the Nasdaq100 continues to make new highs. Near term, secondary issues remain overbought. Caution as we may see some pause or consolidation near the areas noted above. Options expire at the end of this week, which may add some volatility to the Market. Today’s futures(at 8:15am) are down slightly versus fair value. Economic growth indicators and U.S. Treasury funding remain the key Market movers.
Major Economic Reports Today:
Empire Man. Survey-8:30am Net Long Term TIC Flows-9:00am Capacity/Industrial Prod.-9:15am
MAJOR INDICES- Short term support and resistance levels.
DJIA-(close 10624) SP500-(close 1149) N100-(close 1924)
S R S R S R
10540 10650 1143 1150 1920 1935
10522 10710 1135 1160 1900 1950
10500 10725 1130 1165 1888 1952
10443 10800 1123 1175 1880 1963
10366 11000 1120 1180 1875 1975
10355 1115 1200 1863
10200 1111 1860
10176 1108 1850
SMH(Semiconductor HOLDRs Tr)-Closed 27.10. A buy above 27.00.
2/23-XLF -+ 6%, UYG- + 12% 3/08 FAS- +5.9%
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