Market technician Dave Chojnacki of StreetOne Technical Analysis dives into the underlying technicals for the major U.S. averages.
Existing home sales came in weaker than expected on Friday, continuing to demonstrate the slow housing market. Equities looked past the report and opened higher as they attempted to bounce off the big loss in the prior session. Interest rates and Trade continue to wear on the Market. It was a choppy session on Friday in a choppy week. The major indices traded near their 200D moving average during the week.
On Friday, the major averages ended the day little changed and mixed. The SPDR Dow Jones Industrial Average (NYSE:DIA) had the best session on Friday ending positive, while the NDX and SPX were slightly lower. Small-caps continue to underperform since the beginning of September and the IWM (Russell 2000) is way below its 200D-SMA. For the week, the DJIA was up 0.4%, the SPX ended with no change, and the NDX was down 0.6%.
At the close on Friday, the DJIA was up 64.8 points, the SPX slipped 1 point, and the NDX fell 8.8 points. Breadth was slightly negative, above average volume. ROC(10)’s advanced in the session for all three major indices, while they remained in negative territory. RSI’s were mixed, with the DJIA moving higher to 40.5. The NDX ended at lower at 38.7 and the SPX slipped to 35.9. All three major indices remain with their MACD below signal. The ARMS index ended the day at 0.80, a slightly bullish reading at the close.