David Chojnacki S1F Market Technician
It was another week in August, where the Market traded in a very narrow range on little volume. During the month of August, we saw the major indices trade in roughly a 2% range. On Friday, we saw the indices add to their levels as we go into a new month preparing to make another assault on the spring highs. At the close, the DJIA gained .69%, the S&P added .51%, and the Nasdaq100, up .67%. Breadth was positive, 2.3 to 1, on a pick-up in volume. For the week, the DJIA lost .5%, the S&P dropping .3%, and the Nasdaq100 giving up .2%. We lost some near term strength last week as RSI's dropped off a bit, but still remain in bull territory. ROC(10's) moved into negative territory last week, but did rise on Friday. There is some attempt to diminish short term technicals as MACD's have dropped below signal and the DJIA has closed below its 20D-SMA for the entire week. The chart patterns suggest that we are in a consolidation phase and actually have developed a bullish handle during the month of August. This would suggest that we make another run for the spring highs and break through. The bearish case suggests that the weakening technicals are a sign that we fail a second time to break through the highs and the Market rolls over. As investors come back this week, there will be plenty of economic headlines to influence their decisions.
David Chojnacki S1F Market Technician
Long term, the bias remains to the upside, as we remain just below the spring and multi-year highs. While the short term bias remains to the upside, weakening in MACD's, the DJIA falling below its 20D-SMA, and a failed attempt to break through the spring highs, flashes a caution signal as we move into the new month. The S&P continues to have support at 1375 and resistance at 1425, just above the spring highs. For the Nasdaq100 we have 2784 providing resistance and support at 2650. Near term technicals have weakened, and we may see some more pullback, but they are still bullish. This week we have the DNC convention, ECB meeting on Thursday, and Job numbers on Friday. Futures this morning are slightly lower versus fair value.
|MAJOR INDICESShort term support and resistance level|
Major Economic Reports Today
ISM Index-10:00am Construction Spending-10:00am Auto/Truck Sales-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