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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