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StreetOne Technical Analysis, LLC Market Summary-01/05/2011

|Includes: DBA, SPDR Gold Trust ETF (GLD)

by David Chojnacki

After briefly opening to the upside, the Market began selling off and the selling continued to near 1:00pm.  The Market then found support at some key levels and reversed for a mixed close.  At the close, the DJIA was up 20 points, the S&P500 off 1.6 points, and the Nasdaq100lost 2.7 points.  Breadth was negative, 1.8 to 1, on a second straight session of above average volume.   The DJIA and S&P500 remain slightly over bought short term and the S&P500 nearing some tougher resistance at 1275.  The DJIA near term support now becomes 11658 and 11635.   Near term resistance is at 11695 and 11734.  The S&P500 found support at 1262 and bounced off during the session.  Near term support remains at 1262 and 1250.  Upside resistance continues at 1275 and 1288.  The Nasdaq100 bounced off its 2007 high to close little changed.  Near term support continues at 2250 and 2238.  Resistance remains at 2262 and 2275.  Small caps, commodities, including gold were the laggards in the session.  The Russell 2000 lost 1.5% for the day.  The VIX lost 1.3 % to close at 17.38. It traded as high as 18.24 and has been volatile the last two sessions. 

     

                                                           

Trading Trend

Long term, the bias remains to the upside for all three major indices.  Short term, bias continues to the upside.  Near term, after trading down early, the indices found support at key levels to close little changed.  The DJIA and S&P500 remain slightly overbought.  Technicals continue to remain strong, but indices may try to remove some of the over bought condition.  Futures at(8:15am) are down moderately versus fair value.  The European debt crisis and U.S. economic recovery confirmation are the top Market movers.

 

Major Economic Reports Today:

Challenger Job Cuts-7:30am    ADP Employment Change-8:15am   ISM Services-10:00am                          Crude Inventories-10:30am

 

 

MAJOR INDICES Short term support and resistance level

DJIA

close 11691

SP500

close 1270

N100

close 2251

11658

11695

1262

1275

2250

2254

11635

11734

1257

1288

2238

2262

11588

11867

1250

1300

2233

2275

11512

11900

1247

1312

2225

2288

11500

12000

1243

 

2221

2300

11450

 

1235

 

2213

 2325

11444

 

1225

 

2200

 

11328

 

1220

 

2189

 

 

 

1218

 

2188

 

 

 

 

 

Trade Ideas

Recent calls-  GLD-closed at 134.75,  stopped out at 136.50.  DBA-closed 31.65, stopped out at 31.60.

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