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…