Economic reports were mixed on Tuesday, with Housing numbers disappointing, but Industrial Production coming in better than expected. The major indices had little reaction to the news, as has been the case lately.
The averages went their separate ways with the big cap Techs once again pushing the Nasdaq 100 (NDX) to new highs. The S&P 500 (SPX) and Dow Jones Industrial Average (DJIA) traded in a very narrow range and ended little changed to the downside. The SPX did make a new intraday high of 2405.70 before giving up the gain and closing at 2400.
At the close, the DJIA gave up 2.1 points, the SPX fell 1.6 points, and the NDX gained 0.35%. Breadth was negative, 1.2 to 1, on below average volume. ROC(10)’s were mixed, with the DJIA and SPX declining and the NDX advancing. All three remain in positive territory.
RSI’s were also mixed, with the NDX rising to an overbought 81.8. The DJIA and SPX pulled back slightly, but remain in bullish territory. The DJIA continues with its MACD below signal, while the other major indices remain above. The ARMS index ended the day at 1.13, a negative reading.
The NDX continued its move to new highs. It closed the day at 5724 and remains in full rally mode. A small set of big cap Tech names, such as AMZN and MSFT, continue to push the NDX higher, while the other indices move sideways. The NDX remains comfortably above its 20D-SMA of 5600.
The SPX hit a new intra-day high, but closed just slightly lower. It remains in a narrow range, but above its 20D-SMA of 2385. The DJIA traded as high as 21033 in the session, just 82 points from its March all-time closing high of 21115, before pulling back.
Near term support for the NDX is at 5700 and 5675. Near term resistance is at 5725 and 5755. Near term support for the SPX is at 2400 and 2388. Near term resistance is at 2412 and 2425.
Europe is lower in early trade on Wednesday, and U.S. Futures are pointing moderately lower in the premarket. The only major economic report out today is Crude Inventories at 10:30am, so traders will be looking at a small batch of earnings reports as well as analyst moves to push stock prices around.
The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) fell $0.90 (-0.43%) in premarket trading Wednesday. Year-to-date, DIA has gained 6.30%, versus a 7.40% rise in the benchmark S&P 500 index during the same period.
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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.