Equities opened to the upside on Monday, as Retail sales came in about where they were expected. The Empire Manufacturing Survey was weaker than expected, but the major averages ignored that report and continued their move to the upside.
It seemed that there was some relief on the Geopolitical scene, after the weekend surgical strikes in Syria. The stronger sectors in the session were defensive, as Utilities and Consumer Staples did well. The major indices ended the session with decent gains, but once again volume was missing on an up day.
At the close, the Dow Jones Industrial Average (DJIA) was up 0.87%, the S&P 500 (SPX) added 0.8%, and the Nasdaq 100 (NDX) gained 0.7%. Breadth was decidedly positive, 2.75 to 1, on light volume. ROC(10)’s advanced in the session, with all three major averages remaining in positive territory.
RSI’s moved higher, with all three major indices now in the 50’s. The DJIA ended at 52.3, the SPX at 51.7, and the NDX finished at 50.6. All three major indices continue with their MACD above signal. The ARMS index ended the day at 0.97, a neutral reading.
It was a good start to the week, with all three major indices ending with moderate gains. Missing volume, however, gave little conviction to the move. RSI’s have been moving to the upside since 3/23. The DJIA and SPX challenged their 50D-SMA’s, but ended below.
The DJIA ended at 24573, having traded as high as 24675. Its 50D-SMA is at 24621. It remains comfortably above its 20D-SMA of 24194. The SPX traded as high as 2686, just one point below its 50D-SMA of 2687. It closed the session at 2677, above its 20D-SMA of 2645. The NDX closed at 6675, above its 20D-SMA of 6609. It remains below its 50D-SMA of 6725. The VIX ended at 16.56, down 4.88%.
Near term support for the NDX is at 6650 and 6609. Near term resistance is at 6700 and 6725. Near term support for the SPX is at 2645 and 2625. Near term critical resistance is at 2687 and 2700.
Europe is trading higher in early Tuesday action, while U.S. Futures are pointing moderately higher in the premarket. Major economic reports on tap today include Housing Starts at 8:30am and Industrial Production at 9:15am.
The SPDR Dow Jones Industrial Average ETF (DIA) rose $2.36 (+0.96%) in premarket trading Tuesday. Year-to-date, DIA has declined -0.71%, versus a 0.18% 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.