David Chojnacki S1F Market Technician
A weak open was followed by buyers late morning. That rally quickly faded and the indices traded sideways into the close. Volume was weak again, except for the Nasdaq100, which increased from the prior session. Some of the pick-up could be attributed to PCLN(Priceline) which fell 17% in the session, on nearly 4 times its normal volume. At the close, the DJIA added just 7 points, the S&P up a feeble 0.87 of a point, and the Nasdaq100 giving up 3.1 points. Breadth was slightly positive, on weak volume. RSI's remained nearly constant, but we saw a slight slip in ROC(10's). Technicals remain strong and we continue to eye the spring highs. There remains some near term resistance, specifically 1405 area for the S&P, and 2725 for the Nasdaq100. The DJIA seems to be having some trouble near 13200, but it should manage to reach the 13279 level before serious resistance is met. We can expect to see near term support at 13125 and 13000. For the S&P, near term support lies near 1395 and 1388, with more important support at 1375. The S&P did form a 'Doji' in yesterday's session; something to just make a note of. Probably the highlight of economic news this week, comes out at 8:30 this morning, as Unemployment Claims are reported. Some whispers across the Pond again this morning regarding funding the European bailout. This is having a tendency to keep early Futures in check. We may see this impacting on the Euro in morning trade. The VIX continues to melt-down as it closed off 4.1%, to close at 15.32. Futures this morning are lower versus fair value.
Major Economic Reports Today
Initial/Continuing Claims-8:30am Trade balance-8:30am Wholesale Inv.-10:00am
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