David Chojnacki S1F Market Technician
The Market displayed strength right out of gate yesterday, but then lost momentum by early PM. By late PM, we saw sellers step in once again, giving us a mixed close. For the second day in a row, the Nasdaq100 was the weakest of the big three. At the close, the DJIA added 0.5%, the S&P rose by 4.4 points, and the Nasdaq100 gave up just 3.4 points. Breadth was positive, 2 to 1, on below average volume. RSI's were little changed as they remained in bullish territory. ROC(10's) rose for the DJIA and S&P, but fell for the Nasdaq100. Technical bias remains to the upside for the short and the long term. The weakness in the Nasdaq100 over the last two sessions raises the caution flag for the near term. This is not a major concern, but its MACD remains below signal and it had met resistance at lower levels for the last two sessions. In yesterday's session the Nasdaq100 could not get above the 2800 level. It did manage to hold its 20D-SMA(2776). It closed right at its spring closing high of 2784, but below the upside bias pivot point of 2807. Below 2784, the next near term support level is 2750. Upside resistance is at 2825. The S&P held the 1425 support level and maintained its near term strength. It has met resistance now several times in the last three sessions near the 1437-38 area. We originally expected this to be weak resistance, with more importance resistance near the 1440-1450 area, however, it is proving to be rather formidable. IWM(iShares Russell 2000) has yet to close above its March 2012 closing high of 84.40. The VIX inched up to close at 16.41, off its recent lows, but still relatively tame. Futures are higher this morning versus fair value, on news from Germany that the courts ruled to back the rescue plan with a limit on liability.
Major Economic Reports Today
Export/Import Prices-8:30am Wholesale Inv.-10:00am Crude Inv.-10:30am
ALL PRICES NOTED IN THIS PUBLICATION ARE AS OF THE CLOSE ON TRADING PRIOR TO TODAY'S DATE, UNLESS OTHERWISE INDICATED
This publication is neither an offer to sell nor a solicitation to buy any securities mentioned herein. The information contained herein is based on data obtained from recognized sources that are believed to be reliable. Street One Financial LLC (S1F) have not independently verified the facts, assumptions and estimates contained in this publication. Accordingly, no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions contained in this publication. The information contained in this publication is not and does not purport to be a complete analysis of every material fact respecting any company, industry, ETF or other security. Additional information concerning this publication may be available on request, if available. Many of the securities mentioned in this publication involve a higher degree of risk and more volatility than the securities of more established securities. For these and other reasons, the investments discussed in this publication may be unsuitable for investors depending on their specific investment objectives and financial position. Each investor should complete his or her own additional investigation and assessment prior to making investments in any securities. Transactions in securities mentioned herein may be effected only in those states where such securities are qualified for sale. Street One Technical Analysis LLC is an independently owned Company from Street One Financial LLC (S1F). S1F is an independent Company specializing in ETF's, equities, and options. S1F specializes in agency ETF/ETP, equities, and options trade execution. On the ETF/ETP end, S1F may work with the ETF issuers to understand their products more thoroughly and how they can complement an investor's portfolio
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.