David Chojnacki S1F Market Technician
The indices made a valiant attempt to hold on to gains during the morning hours , but eventually technical resistance levels won out and pushed the averages to the down side. The selling was more fluid during the final hours and the indices closed with moderate losses in the session. At the close, the DJIA and S&P dropped 0.4%, and the Nasdaq100 slipped 0.8%. Breadth was negative, 2 to 1, on a pick-up in volume. RSI's fell close to the 30 level, indicating that we might be reaching near term over-sold levels. ROC(10's) remained negative and continued further to the downside. The S&P traded within a technical range as did the other major averages. The S&P remains below the 200D-SMA(1381), but found support at its 50% retracement level of 1371. We expect that near term there is fairly good support in the 1371-75 area for the S&P, but that eventually the major indices will follow the lead of the Nasdaq100 to additional correction. The S&P has upside resistance at 1384 and 1393. Bias, short term, remains to the downside as long as we stay below 1425. We continue to watch the Nasdaq100 as it is the leader to the downside and yesterday it closed below its 10% correction level. It traded as low as 2554 in the session, before finding some support and closing a few points above. The 2550 level and 2525 should provide some near term support. Near term technicals continue to suggest that we may get a brief bounce at these levels. Upside resistance is now at 2575 and 2588. We get PPI numbers today and FOMC minutes. These may have some impact on today's action. We also have the President having a press conference today, scheduled for 1:30pm, which may also be a Market mover. The VIX closed at 16.65, continuing to suggest that there is little fear in the Market. This does not reflect the action of the last several weeks. Futures this morning are higher versus fair value.
Major Economic Reports Today
Retail Sales-8:30am PPI-8:30am Business Inv.-10:00am FOMC Minutes-2:00pm
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