Market technician Dave Chojnacki of StreetOne Technical Analysis wraps up the trading week with a recap of Thursday’s action and previews Friday’s session with a deep dive into the markets’ underlying technicals.
Before the bell on Thursday, we got good Numbers and the came in as expected. This set the stage for the major indices to open higher. Techs continued their move higher and helped the to outperform the other major indices. During the afternoon hours prices were relatively stable, but the and the were able to eke out moderate gains. The DJI finished at its highest level since the end of January, but below the January record high. The ended the day at 2.96, remaining below the 3% level.
At the close on Thursday, the DJI added 0.57%, the SPX gained 0.53%, and the NDX, the big winner, up 0.98%. Breadth was slightly positive, 1.2 to 1, on average volume. ROC(10)’s were mixed, with the DJI advancing and crossing into positive territory. The NDX and SPX declined and remained in negative territory. RSI’s advanced in the session, with the DJI continuing to be the strongest at 65.6. The NDX is now at 57.7 and the SPX finished at 63.9. All three major indices remain with their MACD’s below signal. The ARMS index ended the day at 1.08, a nearly neutral reading.
The SPX closed higher for the fourth straight session, while the DJI has now been up the last three. The NDX has been higher the last 3 out of 4 sessions. MACD’s remain below signal, which is cautionary, but they remain above their 20D-SMA’s. As we noted the NDX had the best day and closed at 7561. It is comfortably above its 20D-SMA of 7498. Its 50D-SMA sits at 7411. The DJI closed at 26145, nearly 500 points