Technical analyst Dave Chojnacki of Street One Financial recaps Tuesday’s mixed market action, and updates the most important technical levels for the major indexes as the Nasdaq continues to outperform.
Nasdaq Ekes Out Another All-Time High
Equities opened lower yesterday, despite little news to impact their direction. A slightly better than expected Job Openings number may have given stocks a lift as they moved upward after the news. The upside momentum lasted till just after the noon hour, when equities reversed and the major indices declined into the close.
Once again, and for the 6th straight session, the Nasdaq 100 (NDX) was able to hold on to some of its gains and registered new highs. The Dow Jones Industrial Average (DJIA) closed slightly lower, and the S&P 500 (SPX) ended with no change. At the close, the DJIA gave up 31.8 points, the SPX had no change, and the NDX added 10.2 points. Breadth was a positive, 2 to 1, on below average volume.
Technicals Suggest Healthy Dow Consolidation
ROC(10)’s were mixed in the session with the DJIA and SPX declining, and the NDX advancing. RSI’s were mixed with the DJIA lower and SPX unchanged. The NDX RSI moved up slightly. MACD’s remain below signal for the DJIA and SPX and above signal for the NDX. The ARMS index ended the day at 1.19, a slightly bearish reading. The NDX made new highs, rising for the 6th straight session.
The NDX closed at 5035 and traded as high as 5049. The NDX continues as the strongest major index near term. It continues comfortably above its 20D-SMA of 4942. The DJIA fell below its 20D-SMA of 19881 in yesterday’s weakness. This appears to be healthy consolidation for the DJIA.
The SPX has also seen some consolidation, and it remains within the range of the ‘Bull handle’ and above its 20D-SMA of 2262. It attempted to test the prior highs yesterday but failed. The DJT (Dow Transports) had a good day, up 0.8%, but remains nearly 400 points from its recent high.
The VIX was little changed, down 0.09 of a point to 11.47. Near term support for the NDX is at 5025 and 5007. Near term resistance is at 5050 and 5075. Near term support for the SPX is at 2262, 2261 and 2250. Near term resistance is at 2271 and 2276, 2277.
Oil In Focus Today
Europe is slightly higher in early trade this morning, while U.S. Futures are slightly higher in the pre-market. The only major economic data on tap today is the highly important Crude Inventories report at 10:30am. That news is sure to move oil-tracking ETFs like USO and UCO, so keep those on your radar today.
The PowerShares QQQ Trust ETF (NASDAQ:QQQ) rose $0.06 (+0.05%) in premarket trading Wednesday. Year-to-date, QQQ has gained 3.48%, versus a 1.31% rise in the benchmark S&P 500 index during the same period.
Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, David Chojnacki, does not endorse or recommend any issuer or security mentioned herein.
Dave Chojnacki is the Chief Market Technician at Street One Financial. He provides technical support for the Street One team and also develops individual analysis for Clients as requested.
Dave is a major contributor to the ‘ETF Daily’, a morning newsletter providing clients a daily look at market technicals of the major indices and selected ETF’s. Market trends, support and resistance levels are provided in the daily letter. The Technical portion of the daily can also be found on Seeking Alpha. Mr. Chojnacki has been quoted in a number of industry publications including the Reuters, ETF Trends, Minyanville, Yahoo Financial and Investors.Com.
In addition, Dave assists with desk trading when necessary. He possesses a Series 7 and 63.
Prior to joining Street One, Dave designed and developed I/T Systems for the Insurance and Financial Industries.