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StreetOne Technical Analysis, LLC Market Summary-01/06/2011

by David Chojnacki

The Market opened weak, but quickly moved to the upside on some positive economic news.  The indices held the moderate gains into the close.   At the close, the DJIA was up 31 points, the S&P500 gained 0.5%, and the Nasdaq100 up 0.8%.  Breadth was positive, 1.3 to 1, on another above average volume session.  All three major indices closed at new multi-year highs.  The DJIA and S&P500, are now joined by the Nasdaq100  in being slightly over bought short term.   The DJIA near term support remains at 11658 and 11635.   Near term resistance is now at 11722 and 11734.  The S&P500 closed just above the 1275 resistance level, and we will look to see if it can hold that level.   Near term support is now 1275 and 1262.  Upside resistance is now 1288 and 1300.  The Nasdaq100’s moderate move to the upside put the MACD above signal and displayed continued strength as the leading index.  Near term support is now 2262 and 2250.  Resistance has become 2275 and 2288.  Financials lead the move to the upside as they continue to gain strength.  The VIX lost 2 % to close at 17.02. Volatility remains relatively low.

     

                                                           

Trading Trend

Long term, the bias remains to the upside for all three major indices.  Short term, bias continues to the upside.  Near term, the Market continues to find buyers on any pullback.  All three indices remain slightly overbought but bias remains to the upside.  Technicals continue to remain strong, and at some point may try to remove some of the overbought condition.  Claims report may have some impact on Market this morning, and tomorrows Employment report will be key.  Futures at(8:15am) are up slightly versus fair value.  The European debt crisis and U.S. economic recovery confirmation are the top Market movers.

 

Major Economic Reports Today:

Initial/Continuing Claims-8:30am   

 

 

MAJOR INDICES Short term support and resistance level

DJIA

close 11722

SP500

close 1276

N100

close 2270

11658

11722

1275

1278

2262

2275

11635

11734

1262

1288

2261

2288

11613

11867

1252

1300

2250

2300

11530

11900

1250

1312

2240

2312

11500

12000

1243

 

2238

2325

11450

 

1235

 

2225

 

11444

 

1226

 

2213

 

11340

 

1225

 

2200

 

11338

 

1222

 

2190

 

 

 

 

 

Trade Ideas

None today. 

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

 

DISCLAIMER LANGUAGE

ALL PRICES NOTED IN THIS PUBLICATION ARE AS OF THE CLOSE ON TRADING PRIOR TO TODAY’S DATE, UNLESS OTHERWISE INDICATED

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