Market technician Dave Chojnacki of StreetOne Technical Analysis wraps up an eventful trading week with a deep dive into the underlying technicals for the major U.S. averages.
After Wednesday’s big loss, Futures were considerably lower before the open on Thursday. The CPI number, came in lower than expected and the Unemployment Claims number came in higher than expected. Futures improved after the reports, as traders saw it as a cooling of economy and lessening pressure on rates. The SPX and Dow opened lower, but we saw a positive open in the NDX. Investors saw some bargains in the beat up Techs. This did not last through the session as the major averages broke through some key support levels and the selling accelerated in the PM hours. Rates, which have been blamed for the recent sell-off, were lower with the 10YR coming down to 3.13. All three major indices ended the day with significant losses. It was the 6th straight loss for the SPX.