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StreetOne Technical Analysis, LLC Market Summary-10/19/2010

|Includes: VanEck Vectors Indonesia Index ETF (IDX)

 by David Chojnacki

The Market started the week opening to the upside and holding those gains into the close.  At the close, the DJIA and S&P500 were up 0.7%, and the Nasdaq100 closed up 0.3%.  Breadth was positive, 2 to 1, on above average volume.  The DJIA met resistance again at 11125 area, but this time moved through and closed above.  Support is now 11125 and 11000. Near term resistance is 11205, which is the April highs; above that we find additional headwind near 11254.  The S&P500 held the 1175 support area, which remains as near term support, with 1188 and 1200 continuing as resistance.  The Nasdaq100 closed just above the 2100 level, an area that it hasn’t seen since December of 2007.  Support below 2100 is now at 2088 and 2075.   Near term resistance to the upside is now 2125.  The Nasdaq100 at these levels supports longer term strength.  For the near term, expect some consolidation as it moves into the seventh week of a short term rally.  All three major indices possess RSI’s indicating short term overbought conditions.  Financials displayed some strength in the last session as the XLF gained 2.2%.  The VIX gained just 0.3% to 19.09, remaining relatively low.

  

Trading Trend  

Long term, the Nasdaq100 bias has moved to the upside. The DJIA and S&P500 still remains to the downside.  Short term, bias remains to the upside.  Near term, a brief correction or consolidation should be expected.  Apple’s drop after earning’s will effect Nasdaq100 today. Technical strength continues and even with a brief pause, the DJIA and S&P500 should join the Nasdaq100 in testing the April highs and moving above.  A low key week coming up for economic reports, but eyes will continue to remain on 3rd Qtr.  Earnings.  Today’s futures(at 8:15am) are moderately lower versus fair value.  The European debt crisis and U.S. economic recovery confirmation are the top Market movers.

 

 

Major Economic Reports Today:

Housing Starts/Building Permits-8:30am

 

MAJOR INDICES Short term support and resistance level

DJIA

close 11143

SP500

close 1184

N100

close 2104

11125

11179

1175

1187

2100

2125

11022

11205

1169

1188

2090

2140

11000

11254

1163

1200

2088

2150

10910

11325

1155

1217

2075

2175

10900

11450

1150

1225

2065

 

10800

 

1143

 

2056

 

10725

 

1130

 

2055

 

10708

 

 

 

2052

 

 

 

 

 

2050

 

 

 

 

Trade Ideas

IDX-Market Vectors Indonesia-87.95.  Has been consolidating since the beginning of the month when it made a new closing high of 89.54.  It has support near 87 and a pullback and hold at this level would make it a buy.

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

 

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