Dow Jones Industrial Average Volume All But Vanishes

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November 9, 2017 8:07am INDEXDJX:.DJI NYSE:DIA

Technical analyst Dave Chojnacki of Street One Financial recaps yet another sleepy day for the U.S. markets and updates the important technical levels to watch as we approach the holiday season.

The major indices opened mixed and were choppy through the early going on Wednesday. When the averages finally caught a bid to the upside, it was the big techs that were leading the way again. This propelled the Nasdaq 100 (NDX) to new closing and intra-day highs.

Apple (AAPL) moving to new all-time highs contributed to the NDX, and the other major indices as well. All three major indices closed at new all-time highs, but the Dow Jones Industrial Average (DJIA) and S&P 500 (SPX) were unable to meet their record intraday highs. Volume also fell off in the session.

At the close, the DJIA was up 6.1 points, the SPX inched up 3.7 points, and the NDX gained 0.4%. Breadth was just slightly positive, on below average volume. ROC(10)’s advanced in the session, with all three major averages continuing in positive territory.

RSI’s moved slightly higher, with the DJIA barely holding its lead at 77.9, with the NDX now at 77.4. The SPX finished at 72.5. All three major indices are now in overbought territory.

The SPX MACD crossed above signal in the session, joining the NDX. The DJIA is the only major index with its MACD remaining below signal. The ARMS index ended the day at 0.97, a nearly neutral reading.

Yesterday’s session was typical of so many we have seen in the last few weeks. Once again we had small gains propelling the major indices to new highs. Volume was absent, leading to little conviction to the move.

The DJIA closed at 23563 (a record high). Intraday it traded as high as 23575, below the record of 23602. Its 20D-SMA is now at 23304.

The NDX also closed with a new record high of 6345. It hit an intraday record high of 6346. The NDX is now up 5.1% since 10/26.

The SPX recorded a new closing high of 2594. Its 20D-SMA is now at 2571. Meanwhile, the VIX lost 1.1% to finish at 9.78.

Near term support for the NDX is at 6325 and 6300. Near term resistance is at 6350 and 6368. Near term support for the SPX is at 2588 and 2575. Near term resistance is at 2600 and 2612.

Europe is lower in early trade Thursday, while U.S. Futures are pointing moderately lower in the premarket. Major economic reports on tap today include Jobless Claims at 8:30am, Wholesale Trade at 10:00am, and EIA Natural Gas at 10:30am.

The SPDR Dow Jones Industrial Average ETF (DIA) fell $0.90 (-0.38%) in premarket trading Thursday. Year-to-date, DIA has gained 21.00%, versus a 16.99% rise in the benchmark S&P 500 index during the same period.

DIA currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #4 of 78 ETFs in the Large Cap Value ETFs category.

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.

About the Author: Dave Chojnacki

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.

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