Technical analyst Dave Chojnacki of Street One Financial wraps up the trading week with a recap of Thursday’s mixed market action, and previews Friday’s session with an update of the important technical levels to watch out for in the major U.S. averages.
Good Claims Numbers and Leading Indicators helped move equities higher at the Market open on Thursday. The major averages then traded in a narrow range for most of the session.
The major indices were mixed and little changed at the close. A small gain in the Nasdaq 100 had it up for the 10th straight session, as the technology-focused index fund made new highs. The Dow Jones Industrial Average and S&P 500 ended slightly lower by the final bell, keeping the SPX from making a new closing high for the third straight session. It did hit a new intraday high, however.
At the close, the DJIA fell 28.9 points, the SPX inched down 0.38 of a point, and the NDX added 5 points. Breadth was only slightly positive, on average volume. ROC (10)s were higher for all three major indices, as they remained in positive territory.
RSI’s were mixed in the session, with the SPX continuing to lead at 66.8. The DJIA was lower at 61.5 and the NDX ended at 66. All three MACDs continue to remain above signal. The ARMS index ended the day at 1.33, a slightly bearish reading.
The NDX lead the way Thursday, with a new closing high of 5921 and an intraday high of 5932. Its 20-D SMA is attempting cross back above its 50-D SMA, as they both sit at 5747.
As noted earlier, big Tech pushed the NDX to its 10th straight gain. The DJIA found resistance just below its top Bollinger Band® in the session at 21661. It remains comfortably above its 20D-SMA of 21464. The SPX met resistance just above its top Bollinger Band of 2474. It traded as high as 2477. It has support at its 20D-SMA of 2439.
iShares Russell 2000 (NYSE:IWM) made a new closing high at 143.20 for the second day in a row. IWM new highs indicate the broadness of the recent rally. Meanwhile, the VIX fell 2.1% to finish at 9.58, as volatility remains at historically low levels.
Near term support for the NDX is at 5900 and 5875. Near term resistance is at 5922, 5925 and 5950. Near term support for the SPX is at 2462 and 2450. Near term resistance is at 2475 and 2488.
Europe is moderately lower in early trade Friday, while U.S. Futures are mixed in the premarket. There are no major economic reports scheduled for today, but we do have some earnings from major companies, and it’s options expiration day, so we may well see some relatively big moves to wrap up the week.
The SPDR Dow Jones Industrial Average (SI:SPDR) ETF was unchanged in premarket trading Friday. Year-to-date, DIA has gained 10.70%, versus a 11.57% 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 #5 of 76 ETFs in the Large Cap Value ETFs category.