Today's Technical Outlook 10/25/2012

Oct. 25, 2012 7:55 AM ET
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Growth

Contributor Since 2009

Street One Financial LLC (S1F or Street One) is an independent entity affiliated with Precision Securities, LLC., a full service registered broker dealer and a member of FINRA/SIPC. Street One specializes in educating, evaluating and trading ETFs, equities and options. Our firm assists portfolio managers in constructing their portfolios and identifying which ETF products may provide the best desired exposure by specific manager objective, fees and liquidity. The ETF/ETP landscape is evolving rapidly and has diversified quickly beyond passive equity index ETFs. Now actively managed strategies, fundamental and quantitative ETFs, as well as those that offer exposure to fixed income, commodities or even volatility indexes are available to all investors. Street One believes the key to understanding this rapidly changing environment is to learn how specific products work and where they may fit within a manager's portfolio. In addition to ETFs, options, and equities, we also handle closed end funds (CEF) trade execution and access to liquidity. All Street One Financial trades are executed by Precision Securities, LLC.

Market Summary

David Chojnacki S1F Market Technician

A move up at the opening bell was quickly reversed, as the averages moved back near the flat line and huddled that level for most of the day. A sell off late in the session put the indices in the losing column at the final bell. At the close, the DJIA lost 25 points, the S&P gave up 4.3 points, and the Nasdaq100 losing 10 points. Breadth was negative, 1.2 to 1, on average volume. RSI's slipped moving into the lower to mid 30's and head toward the over-sold levels. ROC(10's) remain negative and declined further in the session. There was nothing new in the FED statement, but the continuing message of a weak economy seemed to keep traders depressed and keying in on earning's reports, which have been reflecting the weak economy. Once again key technical levels were breached as the Nasdaq100 slipped below its 50% Fibonacci retracement level(2662). The Nasdaq100 recently had its longer term ROC(150) fall into negative territory for the first time since January of 2012. The S&P closed two points below a 1 year trend-line as indications of a more severe correction are beginning to manifest themselves. The S&P now has support at 1400-1395 and at 1388. Below 1425 we continue to see the short term bias to the downside. Near term resistance is now at 1410 and 1420-25 area. The Nasdaq100, continues to lead us to the downside and it is now nearing longer term support. Remaining below the 1 year trend-line may see us eventually correcting at least 10%. Support now at 2655, its 200D-SMA, where we closed yesterday. Below here we have support at 2650 and 2625. Resistance is at 2675 and 2681. Futures are moderately higher this morning versus fair value. StreetOne Financial WEBINAR-Using Low-Volume ETFs For Maximum Impact and Minimum Cost *November 07, 2012 2:00-3:00pm EDT Register here: https://www2.gotomeeting.com/register/981003234>

Major Economic Reports Today

Initial/Continuing Claims-8:30am Durable Orders-8:30am Pending Home Sales-10:00am

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

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.