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StreetOne Technical Analysis, LLC Market Summary-04/07/2010

|Includes:EEM, FXI, FXP, IWM, TNA, XLB, Financial Select Sector SPDR ETF (XLF), XLK, XLV, XME

 A slightly lower open was followed by a gradual move to the upside by the afternoon. Some selling in the last hour left the Market little changed for the session. The DJIA was off just 3.5 points, the S&P500 up 2 and the Nasdaq100 up 4 points. The small gain in the S&P500 and the Nasdaq100 was enough to push them to another new closing high.  Breadth was positive 3 to 1, with volume light again. We held just above or at top of recent range, so near term trend prevails.  Other then a slowing ROC(10), especially in the DJIA, not much change in technicals. The Dow Transports closed with a new high and confirmed recent new highs in the industrials. The Russell’s(1, 2, and 3000’s) made new closing highs for the second straight session. The 1175 and 1975 areas for the S&P500 and Nasdaq100 have now become support. The Financials (NYSEARCA:XLF), continued to lead the Market, gaining 1% to 16.41. Support now at 16.30, 16.15, 16.00, and 15.75. Resistance at 16.50, 16.75, and 17.00. GOLD(NYSEARCA:GLD) continues moving up, gaining 0.14 to 111.03. Looking to test the top of recent range of 106.50 to 112. The VIX lost 4.6% to 16.23, a new 52 wk. low. In fact, we haven’t seen these levels since mid 2008.    

 

Trading Trend

Long term, technicals remain positive as we continue to trade at or near recent highs.  Short term, upside bias continues. Near term, we remain positive, however, momentum has slowed. The major indices remain somewhat overbought again short term. Today’s futures(at 8:15am) are down slightly versus fair value. Economic recovery confirmation(e.g.-employment, consumer spending) and interest rates have become the key Market movers.

 

Major Economic Reports Today:

Crude Inv.-10:30am    Consumer Credit-3:00pm   

  

MAJOR INDICES - Short term support and resistance levels

DJIA-(close 10969)

SP500-(close 1189)

N100-(close 1981)

10907

11000

1189

1194

1975

1982

10885

11041

1175

1200

1967

1988

10800

11125

1170

1213

1963

2000

10784

11254

1165

1225

1961

2012

10725

11500

1163

 

1950

2025

10605

 

1160

 

1940

 

10594

 

1150

 

1939

 

10540

 

1143

 

1935

 

10500

 

1139

 

1920

 

 

Options/Derivative Flows(from the desk of P.Weisbruch)

"In EEM (iShares Emerging Markets), the recent trend of bullish orderflow continued.  Buyers of calls and sellers of puts in the June 36 put / 49 call risk reversals surfaced yesterday morning, and this follows recent call buyers / put sellers of the June 41 combos on Monday. In FXP (ProShares UltraShort FTSE/Xinhua China 25) we saw buyers of in the money May 7 calls in notable size.  This ETF tracks the inverse return of the FTSE/Xinhua China 25 on a daily basis (FXI), so the call buyers are possibly positioning for a correction in FXI, which has rallied over 10% in the past week.  In XLK (SPDR Technology), downside put sellers entered the market, specifically trading the June 22 puts. XLK has lagged the general market, only up 1.57% year to date versus SPY (S&P 500) up over 6%. The put

 

 

sellers may believe that the sector will catch up to the rest of the domestic equity market heading into the summer."

 

Trade Ideas

XME(SPDR S&P Metals and Mining)-Closed 59.95. A buy above breakout of 58.73. Recent positive cross in MACD. Similar trade, XLB(SPDR SEL materials), also making new high.

IWM(iShares Russell 2000)- Closed 70.12. Remains buy above breakout level-69.23. Similar trade TNA(Direxion Small Cap-3X leverage)

EEM(iShares Emerging Markets)-Closed at 43.74. Remains buy above breakout level-43.20. Volume slowed last session.

XLV(SPDR Health Care)- Closed 32.20, off 0.02. Remained above 20D-EMA. Continues to be a buy above 32.00. Short term potential 34.00

S1F In the News: http://www.streetonefinancial.com/news.html

This communication is not intended to constitute any offer or solicitation to buy or sell securities. All trading and broker dealer services are through Emerging Growth Equities, Ltd (EGRO), Broker/Dealer and member of SIPC, FINRA (
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Disclosure: No positions
Stocks: XLF, EEM, FXP, FXI, XLK, XME, XLB, IWM, TNA, XLV