Technical analyst Dave Chojnacki of Street One Financial recaps Monday’s quiet trading action and updates the important technical levels to watch as the major U.S. indexes drip slowly higher.
The major averages opened mixed on Monday, with no major impetus to push stocks in either direction. Equities continue to slowly push to the upside as earnings have met expectations and investors are poised for tax reform. While momentum has recently waned for the Dow Jones Industrial Average (DJIA) and S&P 500 (SPX), there was enough strength to push them to new closing and intra-day highs.
The Nasdaq 100 (NDX) continues to be the stronger performer over the last two weeks. Its small gain propelled it to new highs.
At the close on Monday, the DJIA added 9.2 points, the SPX inched up 3.2 points, and the NDX gained 0.29%. Breadth was positive, 1.4 to 1, on below average volume. ROC(10)’s advanced for all three major indices and remain in positive territory. RSI’s inched higher, with the DJIA holding on to its lead at 77.5. The NDX finished at 75.3 and the SPX at 71.5.
The DJIA and SPX remain with their MACD below signal. This appears to be a result of the slow melt up over the last 2 weeks. The NDX remains with its MACD above signal. The ARMS index ended at 0.82, a slightly bullish reading.
It was another session of the major indices making small gains, but continuing to make new highs. The DJIA closed at 23548 (record high), with an intraday new high of 23574. Its 20D-SMA is at 23233. The DJIA upper Bollinger Band®(R) is now at 23722. The NDX gain pushed it to close at a new high of 6313. Its intraday high was 6318, 2 points above its upper Bollinger Band of 6316. Its 20D-SMA sits at 6144.
The SPX also made new highs of 2591(closing) and 2593(intra-day). It closed right at its Bollinger Band of 2591. Its 20D-SMA is now at 2567.
The VIX added 2.8% to finish at 9.40. It remains below the 10 handle.
Near term support for the NDX is at 6300 and 6275. Near term resistance is at 6325 and 6350. 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 Tuesday, while U.S. Futures are mixed in the premarket. Economic reports on tap today include the JOLTS job report at 10:00am, and Fed chair Janet Yellen will speak at 3:00pm.
The SPDR Dow Jones Industrial Average (SI:SPDR) rose $0.24 (+0.1%) in premarket trading Tuesday. Year-to-date, DIA has gained 20.97%, versus a 16.87% 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 76 ETFs in the Large Cap Value ETFs category.