Street One Fina...'s  Instablog

Market Summary

David Chojnacki S1F Market Technician

The Market continued to exhibit the weakness on Friday that initiated at the beginning of the week. A late sell-off left the indices closing near their lows of the session. At the close on Friday, the DJIA was off 1%, the S&P lost 1.2%, and the Nasdaq100 was the biggest loser, dropping 1.5%. Breadth was decidedly negative, 3.2 to 1, on average volume. Volume this week was heavier on down days. For the week, the S&P lost 2%, the DJIA giving up 1.6%, and the Nasdaq100 losing 2.3%. After a weak start to the week, the averages tried to bounce back, but were unable to gain parity. The indices broke below some key technical levels during the week, and at one point the S&P was off the recent highs by as much as 4.2%. The DJIA and S&P broke below their 20 and 50D-SMA's during the week. The Nasdaq100 fell below its 20D-SMA. MACD's continue below signal and are declining. We traded within technical ranges during the week, suggesting that fundamental money is sitting on the sidelines. It appears that we are in a fourth wave correction which could test the 1340 level in the S&P. Should this scenario play out, we would see a fifth upside wave to complete the rally which started in Oct. '11. The VIX increased significantly last week, up 17%. The increased volatility was reflected in the action of the major indices during the week.

DISCLAIMER LANGUAGE

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

Major Economic Reports Today

Retail Sales-8:30am Empire Manufacturing-8:30am Net TIC Flows-9:00am Business Inv.-10:00am NAHB Index-10:00am

Long term, upside bias remains intact for all three major indices. Short term, technicals are breaking down as MACD's continue below signal and declining. The DJIA and S&P have broken below their short term moving averages, keeping bias to the downside. In the near term, the S&P found support Friday at the key technical level of 1370. There is resistance at 1385-88, with the bias above this level to the upside. Below the 1370 area bias is to the downside. Earnings season continues and investors will monitor closely. There are several key economic reports this week, including Retail Sales today. Early Futures are slightly higher versus fair value this morning.

Trading Trends

David Chojnacki S1F Market Technician