Market technician Dave Chojnacki of Street One Financial updates the important technical levels for investors to focus on as we progress through what looks like a very slow week in the markets.
Equities opened lower yesterday with no major economic news to set the direction. Mondays have been slow recently, and yesterday was no exception.
The major averages traded in a narrow and choppy range on very little volume. Several ‘Hearings’ were going on in Washington, and perhaps traders were preoccupied by those. By the end of the session, the averages ended mixed, with the NDX the only index in positive territory.
The NDX tried to record new record highs, but got to its prior intra-day high and pulled back. The major indices changed very little on the day. At the close, the DJIA fell 8.7 points, the SPX slipped 4.7 points, and the NDX inched up 4.5 points.
Breadth was negative, 1.5 to 1, on low volume. ROC(10)’s advanced with the DJIA and SPX remaining in negative territory, while the NDX remained positive. RSI’s were mixed, with the NDX rising to 71.1. The other indices remain in bullish territory. All three major averages remain with their MACD below signal.
The ARMS index ended the day at 1.15, a fairly neutral reading. The typical Monday session saw the NDX attempting to reach new highs in the session, while the DJIA and SPX languished in the red most of the session. The trade was choppy on very little volume.
Once again the 20D-SMA was key as the three major indices came near or tested that level and found support. The current 20D-SMA’s are: DJIA-20892, NDX-5371, SPX-2372. The NDX is only index that traded near the top of its Bollinger Band of 5424.
IWM (small-caps) closed down 0.43%, to 137.86. It remains several points below its recent closing high of 140.36. The VIX moved lower to finish at 11.34, down 0.5%.
Near term support for the NDX is at 5400 and 5390. Near term resistance is at 5416 and 5426. Near term support for the SPX is at 2372 and 2350. Near term resistance is at 2400 and 2412.
Europe is pointing higher in early trade, while U.S. Futures are moderately higher in the premarket. The only major piece of economic news due out today is the Current Account Balance at 8:30am.
The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) was unchanged in premarket trading Tuesday. Year-to-date, DIA has gained 5.72%, versus a 5.92% 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.