Technical analyst Dave Chojnacki of Street One Financial wraps up the trading week with a deep look at the important market internals for the U.S. averages, which have begun to diverge a bit here in mid September.
Equities were weak at the open on Thursday, despite good CPI and Initial Claims numbers. Then the major indices moved in different directions as the Dow Jones Industrial Average got a bump to the upside from Boeing (NYSE:BA). BA is upping their production for their Dreamliner, and was up 1.36% in the session.
The Nasdaq 100 and S&P 500 were taking a break from their recent record setting and closed lower in the session. The DJIA made new closing and intraday highs on the strength of BA and Oil. Volume dropped off somewhat, and at the close, the DJIA was up 0.2%, the SPX slipped by 0.11%, and the NDX gave up 0.59%, making it the biggest loser in the session.
Breadth was slightly positive, on slightly below average volume. ROC(10)’s were mixed with the DJIA advancing and the NDX and SPX declining. All three remain in positive territory. RSI’s were also mixed, with the DJIA advancing to 65.7 and now the strongest. The NDX finished at 56.2 and the SPX at 63.4. All three major averages remain with their MACD above signal. The ARMS index ended the day at 1.01, a neutral reading.
The DJIA moved to new highs, closing at 22203 and trading as high as 22216. It closed slightly above its upper Bollinger Band® of 22177. It remains above its 20D-SMA of 21881. The SPX traded in a seven point range from 2491 to 2498. It closed at 2495, losing a few points. It remains below its upper Bollinger band of 2503. It continues above its 20D-SMA(2459) and 50D-SMA(2460). The SPX developed a ‘Doji’ , indicating indecision in the session.
The NDX had the biggest loss as the ‘FANG’ stocks have seen some recent weakness. It closed at 5968. It continues above its 20D-SMA of 5903. It continues below its upper Bollinger Band® of 6052.
iShares Russell 2000 (NYSE:IWM) fell 0.13 of a point to 141.83. The VIX was off 0.06 of a point to 10.44.
Near term support for the NDX is at 5950 and 5925. Near term resistance is at 5975 and 6000. Near term support for the SPX is at 2488 and 2475. Near term resistance is at 2499, 2500 and 2512.
Europe is lower in early trade Friday, while U.S. Futures are mixed in the premarket. Major economic reports on tap today include CPI numbers at 8:30am, Jobless Claims also at 8:30am, the Natural Gas Report at 10:30am, and it’s also Options Expiration day today.
The SPDR Dow Jones Industrial Average (NYSE:DIA) fell $0.34 (-0.15%) in premarket trading Friday. Year-to-date, DIA has gained 14.25%, versus a 12.92% 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 75 ETFs in the Large Cap Value ETFs category.