We had a choppy open on Thursday, despite the fact that we received very good Jobless Claims numbers prior to the opening bell. The major averages gradually established a move to the upside as the morning rolled on.
There was some Fed speak that was trying to play down the Hawkish tone set in the FOMC minutes, which may have added some fuel to the rally. Equities were up moderately just after the noon hour, before selling off into the close. By the final bell, the averages maintained small gains, but down substantially from earlier in the session.
At the close, the DJIA added 14.8 points, the SPX gained 4.5 points, and the NDX inched up 2.3 points. Breadth was decidedly positive, 3 to 1, on below average volume. ROC(10)’s advanced in the session, with the DJIA crossing back into positive territory. The SPX and NDX remained in positive territory. RSI’s were little changed to the upside, with the NDX continuing to lead the pack at 60. The DJIA and SPX are near 50.
All three major averages remain with their MACD below signal. The ARMS index ended the day at 1.22, a slightly bearish reading.
We went back to our recent dull sessions yesterday, with the major indices changing very little, on below average volume. The averages did end near their highs of the session and all three developed ‘Doji’s’. We had the DJIA and SPX trading once again around their 20 and 50 Day moving averages. DJIA: 20D-20743, 50D-20593, SPX: 20D-2361, 50D-2345. The NDX ended at 5420, which was 19 points above its 20D-SMA of 5401.
After a big loss in the prior session, IWM (iShares small-caps) had a good day, adding nearly 1%. The VIX lost 3.8% to 12.39.
Near term support for the NDX is at 5401, 5400, and 5375. Near term resistance is at 5425 and 5450. Near term support for the SPX is at 2350 and 2345. Near term resistance is at 2361 and 2375.
We look to world markets reaction to the Syria airstrikes today, which is so far minimal. Europe is mixed in early trade, while U.S. Futures are slightly higher in the premarket. Today we’ll see the Employment Report at 8:30am and Wholesale Inventories at 10:00am as we close out the trading week.
The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) was unchanged in premarket trading Friday. Year-to-date, DIA has gained 4.53%, versus a 5.33% 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.