The Market opened lower on Thursday, as earnings numbers were mixed and Chinese Trade concerns were once more in the news. Techs, which bounced off support on Tuesday, saw renewed strength and reversed direction for the Nasdaq 100 (NDX) to the upside. Apple (AAPL), which has been performing well since announcing its earnings, was a stellar performer and hit the 1 Trillion market cap mark. AAPL , up 2.9% on the day and a strong Facebook (FB), helped propel the NDX to significant gains on the day.
The Dow Jones Industrial Average (DJIA), down heavily early in the session, tried to recover its losses, but ended with a small loss. DuPont (DD) weighed the Dow down. Meanwhile, the S&P 500 (SPX) finished the day with a moderate gain. We get Employment numbers this morning. The 10YR ended at 2.99%.
At the close on Thursday, the DJIA fell 7.6 points, the SPX added 0.49%, and the NDX gained 1.3%. Breadth was positive, 1.5 to 1, on slightly below average volume. ROC(10)’s advanced in the session, with the NDX and SPX crossing back into positive territory. RSI’s were mixed, with the DJIA moving lower and the NDX and SPX moving higher. The SPX is the strongest at 60. The NDX is at 56.3 and the DJIA at 59.1. The SPX and NDX MACD remain below signal. The DJIA MACD remains above signal. The ARMS index ended the day at 1.10, a slightly bearish reading at the close.
The NDX moved up for the third straight session after taking a big hit. FB and TWTR got crushed in recent sessions, impacting the NDX. It closed at 7372, above 7308, which was a buy signal. It recently found good support in 7175 and 7200 range. It is now above its 20D-SMA of 7333. There is not much resistance in the way of the NDX testing its recent closing high of 7508.
The DJIA closed at 25326 and was the weakest of the big three. It traded as low as 25120, where it found support just near its 20D-SMA of 25118. Its 50D-SMA now sits at 24873. The SPX ended at 2827, near its high of the day(2829). It has support at its 20D-SMA of 2806. It has moved further from its 50D-SMA of 2769. The VIX fell 7.3% to finish at 12.19. Volatility remains relatively low.
Near term support for the NDX is at 7333 and 7200. Near term resistance is at 7350 and 7508. Near term support for the SPX is at 2806 and 2800. Near term critical resistance is at 2850 and 2862.
Europe is higher in early trade Friday, and U.S. Futures are pointing higher in the premarket. Major economic reports to close out the week today include the Employment Report at 8:30am, Trade Deficit at 8:30am, and the ISM Non-Manufacturing Index at 10:00am.
The SPDR Dow Jones Industrial Average ETF (DIA) fell $0.13 (-0.05%) in premarket trading Friday. Year-to-date, DIA has gained 3.27%, versus a 6.41% 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 StreetOne Technical Analysis. In addition, he is Portfolio Manager for Sabretooth Advisors.
Dave develops 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.
Prior to joining StreetOne Technical Analysis, Dave designed and developed I/T Systems for the Insurance and Financial Industries.