From: Wantrobski, Dan
Sent: Tuesday, August 28, 2018 7:42 AM
Subject: Macro Movers 8/28/18

New all-time highs again for the S&P 500, Russell 2000, S&P Smallcap 600, Midcap 400, and NASDAQ Comp Index… the NYSE did rally above 13,000 for a minor breakout on the short-term charts, and the DJIA continues to make progress toward its all-time highs near 26,616… the VEU also experienced a strong rally during yesterday’s session… breadth was solid at 3-to-1 advancers vs decliners; volume was slightly below average, which may be on account of the holiday weekend ahead.

All in all the secular bull market advance remains consistent with our model for a reflationary cycle here in the U.S., however on a short-term basis we would note the appearance of minor divergences between price and momentum. This occurs when the power behind a move/rally loses some of its steam, and oftentimes will precede a period of profit-taking / consolidation. We do see this as a distinct possibility over the short-run, even though futures again today are pointing to a higher open.

SPX: 2896.74- new all-time highs, but losing momentum…

On a short-term basis, watch the following levels for initial trading support in sessions ahead:

Index                    LSP                         Initial Support
SPX                        2896.74                 2840-2850
SML                       1092.96                 1060-1080
NASDAQ              8017.90                 7800
MID                       2044.06                 2000
RTY                         1728.41                 1700
DJIA                       26049.64              25450
NYSE                      13102.03              12900-13000

Chart of the Day: The NASDAQ Composite hits 8,000… remember when…