Today's Technical Outlook - 11/19/2012

Nov. 19, 2012 7:58 AM ET

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Market Summary

David Chojnacki S1F Market Technician

Friday's session began with the Market moving down in the AM hours to new lows in this current pullback. Just before noon the indices caught a bid and began to move back above some key supports levels. All three major averages hit near the bottom of their Bollinger Bands and reversed to finish positive at the close. At the close, the DJIA rose .37%, the S&P added .48%, and the Nasdaq100 was up .39%. Breadth was positive, 2.9 to 1, on significantly higher volume, partly attributed to options expiration. The averages did not perform well for the week, as the DJIA gave up 1.7%, the S&P lost 1.4%, and the Nasdaq100 dropped 1.9%. All three averages are now below their 50week-SMA and continue below the 50% retracement level. There were some encouraging signs from Friday's mid-day reversal in that the S&P and Nasdaq100 closed above some key support levels. The S&P moved back above 1349-50 and the Nasdaq100 closed above 2525. If we can hold these levels, there may be some pause in the pullback, as all three major indices are near an over-sold condition. We also had 'Hammers' develop on Friday for each of the indices, signaling a possible near term reversal. The Nasdaq100 is now down 11.5% from its September high and the S&P is off 7.2%. In a holiday shortened week, we get some housing data and Leading Indicators.

Trading Trends

David Chojnacki S1F Market Technician

Long term, all three major averages have confirmed a longer term pullback and bias is to the downside. We expect the S&P and the DJIA to follow the Nasdaq100 down to 10% correction levels. Short term the bias continues to the downside for all indices. Near term, Friday's mid-day reversal, left some hope that we may see a pause in the sell-off and see some consolidation before we either get a reversal or move toward the June lows(Nasdaq100- 2458, S&P- 1278). The VIX continues to defy the Market weakness and has not reflected the Market's poor performance. It closed Friday at 16.41, remaining in a relatively tame volatility level. Futures are up this morning versus fair value.

MAJOR INDICESShort term support and resistance level
DJIA close 12588		SP500 close 1359		N100 close 2534
12500	12600	1350	1362	2525	2550
12400	12674	1349	1371	2512	2575
12250	12724	1337	1375	2500	2578
12249	12810	1325	1382	2475	2588
12101	12991	1319	1384	2458	2600
	12992	1312	1393	2450	2612
	13000	1300	1400	2443	2613
	13012	1278	1402		2625
		1275	1412		2631

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