Morning Commentary for Monday, January 24, 2011

by Steven Chanin on January 24, 2011

Good Morning SOM traders. Last week the market finally had a much needed sell off. Looking forward…here are this week’s economic announcements that could move the markets (all announcements are pre-market, 8:30am, unless indicated and all times are EST) – Tuesday: Consumer Confidence (10:00), Wednesday: New Home Sales (10:00), Thursday: Durable Goods, Pending Home Sales (10:00) and Friday: GDP. Overnight the Asian markets were mixed and at the time of this writing Europe is slightly lower and US index futures are flat to slightly higher.

Technicals…Last week the oscillators have finally unwound from extreme overbought. There was some divergence in the indexes with the RUT leading the way lower closing below its 20 EMA followed closely by the NDX which went below its 20EMA intra-day on Friday but closed above. The large caps (DJI) showed the most strength. Here is what I see for technical support/resistance (all MAs are 6 month Exponential):
DJI: support $11,696 (20 EMA) resistance $11,905 (prior swing high)
SPX: support: $1,272 (20 EMA) resistance $1,310 (2008 swing high)
NDX: support $2,272 (20 EMA), resistance $2,234 (pre-crash swing high)
RUT: support $766 (50 EMA), resistance $782 (20 EMA)

Subscribe to our blog via the RSS or email subscription.


{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: