David Chojnacki S1F Market Technician
After opening a few points higher, the indices traded nearly flat leading into the FOMC decision at 12:30pm. The Nasdaq100 was slightly weaker going negative into the decision. Encouraged that the Fed will continue easing, buyers stepped in, sending the averages to their highs of the day. During the PM hours, the indices began to run into formidable resistance areas. The S&P has on several occasions been unable to get through the 1433-35 levels and the Nasdaq100 had been driven back from 2700 several times. Once again the indices ran into a wall and fell going into the close. At the close, the DJIA dropped 2.9 points, the S&P managed to add 0.64 of a point, and the Nasdaq100 lost 7.5 points. Breadth was slightly negative on average volume. After breaking through a range the prior session, that the averages traded in for nearly 12 sessions, the indices looked like they were poised to make a run toward the September highs. The DJIA and S&P formed Doji's in the session. The Nasdaq100 closed with its 50D-SMA(2673) nearly crossing below its 200D-SMA(2672). Typically known as the 'death cross'. Though near term technicals are fairly strong for the Nasdaq100, we find the 'death cross' setting up because the index is at the same levels it was back in March. The index closed just a point above this intersection after meeting some headwinds earlier in the session. 2700 will provide formidable resistance for the Nasdaq100, as will the 50% retracement level of 2694. It will find near term support at 2664 and 2650. More important support remains at 2625. We find the 1433-35 area and 1450 level, providing near term resistance for the S&P. There is fairly good support in the 1420-1425 area and at 1410. The VIX remains mild at 15.95. Key numbers today(see above) which may move the Market. Indices across the pond are lower this morning. Futures are slightly to the downside versus fair value.
Major Economic Reports Today
Initial/Continuing Claims-8:30am Retail Sales-8:30am PPI-8:30am Business Inv.-10:00am
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