There was no early economic data to move stocks, so the major averages took to their own direction. The DJIA moved higher on the back of big industrial issues, as the Mexico/Canada Trade deal was a big win for the US. Despite weak auto sales, which reported during the session, the DJIA managed to finish with a small gain. The gain was enough for the DJIA to finish in record territory. It was a different story for the SPX, as it moved in a narrow range and ended little changed. The NDX was the weakest in the session, with the FANG stocks taking it on the chin. Small-caps continue to move lower, while the major indices are near their highs. AMZN raised their minimum wage to $15/hr and finished down 1.6%. The 10YR fell to 3.06%.
At the close, the DJIA was up 0.46%, the SPX slipped 1.1 point, and the NDX fell 0.22%. Breadth was negative, 1.5 to 1, on average volume. ROC(10)’s declined, with all three major indices remaining in positive territory. RSI’s were mixed with the DJIA moving higher to 69.7. It continues to lead the major indices. The NDX fell to 60 and the SPX also moved lower to 61.9. The DJIA MACD crossed back above signal, joining the NDX. The SPX MACD remains below signal. The ARMS ended the day at 0.71, a bullish indication.
All three major indices are within striking distance of their record highs and the DJIA finished in record territory. Near term technicals remain strong except for the SPX MACD, which is below signal. The DJIA closed at a record high of 26773 and traded as high as 26824. It is near its upper Bollinger Band® of 26875. It is comfortably above its 20D-SMA of 26294. The NDX ended at 7610, above its 20D-SMA of 7534. Its 50D-SMA sits at 7475. During the session it traded above its record closing high of 7660. It fell short of its new intraday high, established in the prior session at 7700. The SPX closed at 2923, little changed from the prior session. It remains above its 20D-SMA of 2903. The SPX upper Bollinger Band® sits as 2939. The VIX added 0.42% to finish at 12.05. Volatility continues to remain low.
Near term support for the NDX is at 7534 and 7500. Near term resistance is at 7660 and 7700. Near term support for the SPX is at 2903 and 2888. Near term resistance is at 2930 and 2940.
Europe is mixed in early trade, while U.S. Futures are higher premarket.
The SPDR Dow Jones Industrial Average ETF (DIA) was trading at $268.66 per share on Wednesday morning, up $1.09 (+0.41%). Year-to-date, DIA has gained 9.51%, versus a 10.09% 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 82 ETFs in the Large Cap Value ETFs category.
Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, David Chojnacki, does not endorse or recommend any issuer or security mentioned herein.
About the Author: Dave Chojnacki
Dave Chojnacki is the Chief Market Technician at StreetOne Technical Analysis. In addition, he is Portfolio Manager for Sabretooth Advisors.
Dave develops a morning newsletter providing clients a daily look at market technicals of the major indices and selected ETF’s. Market trends, support and resistance levels are provided in the daily letter. The Technical portion of the daily can also be found on Seeking Alpha. Mr. Chojnacki has been quoted in a number of industry publications including the Reuters, ETF Trends, Minyanville, Yahoo Financial and Investors.Com.
Prior to joining StreetOne Technical Analysis, Dave designed and developed I/T Systems for the Insurance and Financial Industries.
