Market technician Dave Chojnacki of StreetOne Technical Analysis wraps up the trading week with a deep dive into the underlying technicals for the major U.S. averages.
PPI numbers came in a little higher than expected on Thursday, but not too hot. Initial claims came in better than expected as jobs continue to grow. The market opened slightly lower and was choppy throughout the day, but again in a tight range.
Good earnings by Roku (NASDAQ:ROKU) and Yelp (NYSE:YELP) helped to push them to good gains. ROKU was up 21% and YELP up 26% in the session. TSLA, which has been the big story recently, is now under SEC investigation. It lost nearly 5% in the session. A last hour move to the downside left the major indices slightly lower on the day. The Nasdaq 100 (NDX) 7 day win streak broke on Thursday. Volume was very low for the 2nd straight session. The 10YR fell to 2.94%.
At the close on Thursday, the Dow Jones Industrial Average (Dow) fell 0.29%, the S&P 500 (SPX) slipped 0.14%, and the NDX off just 0.03%. Breadth was slightly positive, on very weak volume. ROC(10)’s were mixed, with the Dow declining and moving into negative territory. The NDX and the SPX advanced and are positive territory.
RSI’s declined for the NDX and DJIA. The NDX finished at 61.3 and the Dow ended at 61.2. The SPX rose in the session to 64.6, to be the strongest of the three. MACD’s remain above signal for all three major averages. The ARMS index ended the day at 1.28, a slightly negative reading at the close.
It was another slow summer session, with the major indices changing very little. The NDX was the best in the session, but still broke its 7 day win streak. The NDX closed at 7466 and remains within striking distance of its record closing high of 7508. It has support at its 20D-SMA of 7375. The Dow closed at 25509 after trading as high as 25613. The SPX ended Thursday at 2853. It traded in just an 11 point range on the day. It remains within 19 points of its record closing high. Its 20D-SMA provides support at 2824. The VIX finished at 11.27 down 3.8%. It continues with very low volatility.
Near term support for the NDX is at 7400 and 7375. Near term resistance is at 7475 and 7508. Near term support for the SPX is at 2850 and 2825. Near term critical resistance is at 2862 and 2872.
Europe is significantly lower in early trade Friday, and U.S. Futures are lower pre-market. The only major economic report out today is CPI at 8:30am.
The SPDR Dow Jones Industrial Average (SI:SPDR) ETF (DIA) fell $1.16 (-0.45%) in premarket trading Friday. Year-to-date, DIA has gained 4.00%, versus a 7.25% 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 #3 of 81 ETFs in the Large Cap Value ETFs category.