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StreetOne Technical Analysis, LLC Market Summary-12/06/2010

|Includes: IDX, Financial Select Sector SPDR ETF (XLF)

by David Chojnacki

Despite a poor Employment Report, the Market managed to recover from a weak opening to close positive.  This was the third straight gain for the indices as volatility continued to come out of the Market.  At the close, the DJIA was up 19 points, the S&P500 gained 3 points, and Nasdaq100 added 5.8 points.  Breadth was positive, 1.8 to 1, on below average volume.  The MACD crossed the signal line on all three indices confirming the upward momentum in the recent move.  For the week, the DJIA  gained 2.6%, the S&P500 up 2.9%, and the Nasdaq100 moving up 1.7.  The DJIA is poised to test the recent Nov. high(11444) which becomes near term resistance along with 11487.  Near term support remains at 11325 and 11254.  The S&P500 closed just a point below its Nov. closing high. Support remains at 1217 and 1200 with resistance setting up at 1225 and 1237.  The Nasdaq100 moved three points above its Nov. high(2188) and this now becomes near term support along with 2165.  Near term resistance is now 2200.  The Nasdaq100 is just 2.1% away from its high in Nov. 2007, which was just before the downturn from the Financial crisis.  The VIX was hammered for the 3rd session, down 7.1% to 18.01. 

 

Trading Trend

Long term, the Nasdaq100 bias remains to the upside.  The DJIA and S&P500 longer term technical strength has increased and we just look for confirmation at this point.    Short term, bias continues to the upside.  Near term, the Market held up well on poor news in the last session and the indices should test and break the recent November highs.  Only a few key economic reports this week. Futures at(8:15am) are  slightly lower versus fair value.  The European debt crisis and U.S. economic recovery confirmation are the top Market movers.

 

Major Economic Reports Today:

No reports scheduled

 

 

MAJOR INDICES Short term support and resistance level

DJIA

close 11382

SP500

close 1224

N100

close 2191

11325

11444

1217

1225

2188

2200

11254

11450

1209

1233

2180

2210

11214

11487

1203

1237

2168

2213

11210

11500

1202

1250

2158

2225

11205

11650

1200

1262

2151

2239

11105

11734

1188

 1275

2150

 

11058

 

1183

 

2140

 

11000

 

1180

 

2135

 

10933

 

1175

 

 

 

 

 

Trade Ideas

Recent Calls- XLF(SPDR Select Financial)- A buy above 15.10.  Traded below buy level on Friday but then moved above and closed just above late in the session.  Remains buy above 15.10. Resistance at 15.60 area.

IDX-Called 10/19 at 87.95. Current – 89.81(+2.1%).  Recent support at its 50D-SMA(88.62.).  Has been hitting resistance near 90.50-90.75 level.  

 

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

 

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