Market technician Dave Chojnacki of Street One Financial recaps Monday’s weak market action and updates the key technical levels for traders to focus on as we progress through the first week of the second quarter.

After a brief flat open to start the week, equities began a slow move to the downside on Monday. Auto Sales were weak, however, Construction Spending and the ISM index were better than expected. Traders were not impressed, and pushed prices lower through the morning hours.

The major indices made an attempt to recoup the early losses and by the final bell ended only slightly lower. Mondays have typically seen light volume this year so far, but it was a bit better in yesterday’s session. At the close, the DJIA fell 13 points, the SPX slipped 3.8 points, and the NDX was off 4 points. Breadth was slightly negative, 1.2 to 1, on average volume.

ROC(10)’s were mixed, with the SPX the only index advancing. The NDX is the only index in positive territory. RSI’s slipped a bit, but remain in bullish territory. The NDX continues to lead the major indices with an RSI of 64.4.

All three major averages remain with their MACD below signal. The ARMS index ended the day at 1.54, a bearish reading. It was a somewhat uneventful session, as the averages closed very near to their open. This was depicted by all three major indices developing a ‘Doji’ candlestick in the session.

The DJIA and SPX traded in a relatively narrow range and bordering their 20 and 50D moving averages. The SPX is finding support near its 50D-SMA of 2341 and resistance at its 50D-SMA of 2362. The NDX continues to be the strongest index near term, and during the session hit a new intraday high of 5453.

The NDX also closed just below its recent closing high of 5439. It is the only major index above its 20D-SMA of 5391.

GLD (SPDR Gold) moved higher on the day, finishing up 0.53% to 119.35. The VIX was little changed, up 0.01, to 12.38.

Near term support for the NDX is at 5425 and 5400. Near term resistance is at 5450 and 5475. Near term support for the SPX is at 2350 and 2341. Near term resistance is at 2362 and 2375

Europe is mixed in early trade, while U.S. Futures are pointing lower in the premarket. In terms of major economic reports on tap today, we’ll see the Trade Balance numbers at 8:30am and Factory Orders at 10:00am.

The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) was unchanged in premarket trading Tuesday. Year-to-date, DIA has gained 4.43%, versus a 5.28% 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 #5 of 74 ETFs in the Large Cap Value ETFs category.

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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.

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