Mixed news on Friday leads to a mixed Market. There was encouraging news from the White House that a Trade deal with China was getting closer. Poor guidance from NVDA led to Techs being weak, specifically the Semi sector. The DJIA and SPX moved higher during the session on Friday, while the NDX traded slightly lower. By the final bell, the DJIA and SPX finished moderately to slightly higher. The NDX pulled down by the Tech sector ended slightly lower, despite having a good week. The 10YR ended the session at 3.07%, with rates pulling back the last few sessions.
At the close on Friday, the DJIA added 0.49%, the SPX gained 0.22%, and the NDX slipped 0.34%. Breadth was slightly positive, on average volume. ROC(10)’s moved higher with the DJIA and SPX crossing into positive territory. The NDX advanced but remained in negative territory. RSI’s were mixed with the DJIA rising to 48.6. The SPX rose to 46.7 and the NDX slipped to 43.6. All three major indices remain with their MACD above signal. The ARMS index ended the day at 0.85, a slightly bullish reading at the close.
For the week, the DJIA fell 2.2%, the SPX slipped 1.6% and the NDX added 2.5%. Near-term technicals remain weak despite the NDX reclaiming some of its recent losses. The DJIA is the only index of the big three that is above its 50WK-SMA(25130) and above its 200D-SMA(25093). The DJIA closed at 25413 above its 20D-SMA of 25288. It remains below its 50D-SMA of 25803. The NDX ended at 6867, continuing below its 50WK-SMA of 6990. The NDX remains below its 50% retrace level of 7059. It continues below its 200D-SMA of 7070. The NDX is below its 20D-SMA of 6947. The SPX ended Friday at 2736, 20 points below its 50WK-SMA of 2756. It finished just above its 20D-SMA of 2726. The SPX remains below its 200D-SMA of 2760. The VIX ended at 19.14, down 9.2%. For the week the VIX added 4.4%. Near-term support for the NDX is at 6800 and 6769. Near-term resistance is at 6947 and 6990. Near-term support for the SPX is at 2726 and 2700. Near-term resistance is at 2756 and 2760. Europe is mixed in early trade. US Futures are lower premarket.
The SPDR S&P 500 ETF Trust (SPY) was trading at $269.47 per share on Monday afternoon, down $4.26 (-1.56%). Year-to-date, SPY has gained 1.38%.
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.