The roller coaster continues for the S&P 500

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December 12, 2018 12:14pm INDEXSP:.INX NYSE:SPY

INDEXSP:.INX | News, Ratings, and Charts

Market technician Dave Chojnacki of StreetOne Technical Analysis


PPI came in slightly higher than expected, but the Market was trying to follow- up on the prior session’s comeback.   Equities opened higher and looked strong early on, until word of a possible government shutdown took the steam out of the market.   The major averages gave up all of their gains and only some strength in Techs kept the NDX from going into the red. The major indices finished mixed in the choppy session with the DJIA and SPX closing slightly lower and the NDX finishing a bit higher.  The up and down market continues. The 10YR inched up to 2.88.

At the close on Tuesday, the DJIA fell 0.22%, the SPX gave up just 0.94 of a point, and the NDX added 0.32%.  Breadth was slightly negative, on below average volume. ROC(10)’s were lower with the DJIA and SPX moving into negative territory.  The NDX declined, but remained in positive territory. RSI’s were mixed with the NDX moving higher and the strongest index at 44.8. The DJIA and SPX were lower at 39.8 and 39.9, respectively.   The DJIA and SPX remain with their MACD below signal, while the NDX remains above. The ARMS index ended the day at 1.86, a bearish reading at the close.

The roller coaster market continues as the averages are lingering near their recent lows.  The NDX inched out a gain and closed at 6704. We continue to see critical support at its November low of 6442.  It remains below its 10D-SMA of 6815 and its 20D-SMA of 6764. The DJIA closed at 24370 on Tuesday, below its 10D-SMA of 24997.  It remains just above its November low of 24268. It continues below its 20D-SMA of 24965. The SPX ended at 2636, after trading as low as 2621.  2621 is the prior SPX December low. The SPX is below its 20D-SMA of 2696. The SPX is now below its 10D-SMA of 2701. The VIX slipped 3.8% to 21.76, but still remains high.  Near term support for the NDX is at 6650 and 6600. Near term resistance is at 6764 and 6815. Near term support for the SPX is at 2621 and 2603. Near term resistance is at 2650 ad 2696. Europe is higher in early trade.  US Futures are significantly higher pre-market.


S&P 500 Index (.INX) was trading at $268.26 per share on Wednesday morning, up $4.13 (+1.56%). Year-to-date, .INX has gained 0.93%, versus a % 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.

About the Author: Dave Chojnacki

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.


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