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StreetOne Technical Analysis, LLC Market Summary-01/31/2011

by David Chojnacki

After a brief open to the upside, the Market quickly reversed and continued to fall into the close.  The Market was somewhat extended short term and the events in Egypt were the perfect catalyst for a healthy pullback.  At the close, the DJIA lost 1.3%, the S&P500 dropped 1.7%, and the Nasdaq100 gave up 2.5%.  Breadth was decidedly negative, 4.4 to 1, on above average volume. For the week, the DJIA lost 0.4%, the S&P was down 0.5%, and the Nasdaq100 almost flat, off 0.08%.  All three indices dropped below their 10D-EMA and most of the short term overbought was removed in Friday’s session.  The DJIA short term resistance is now 11843 and 11900.  Near term support is now 11787 and 11734.  The S&P500 held the important 1275 level, but closed below its 20D-SMA.  MACD remains slightly negative.  Near term support becomes 1275 and 1262.  Near term resistance continues at 1281 and 1288.  The Nasdaq100 dropped below its 20D-SMA and its MACD remains slightly negative.  Near term support is now 2268 and 2250.  Near term resistance now becomes 2275 and 2288.  2262-2275 is important support area.  The VIX spiked an enormous 24% to 20.04, moving above its 50D-SMA.  A clear sign of Friday’s  “event risk”.

 

Trading Trend

Long term, the bias remains to the upside for all three major indices.  Short term, bias continues to the upside.  Near term, an overdue pullback was sparked by international events. The S&P and Nasdaq100 closed right near important support, (1275 and 2268 respectively).   Near term we may see some more weakness if we break next support levels.  Earnings reports will continue to impact the Market.  Futures at(8:15am) are flat to slightly higher versus fair value. The Market will continue to eye the events in the Middle East.  The European debt crisis and U.S. economic recovery confirmation are the top Market movers.

 

 

Major Economic Reports Today:

Personal Income/Spending-8:30am   PCE Prices-8:30am   Chicago PMI-9:45am

 

 

MAJOR INDICES Short term support and resistance level

DJIA

close 11823

SP500

close 1276

N100

close 2270

11787

11843

1275

1281

2268

2275

11734

11867

1262

1287

2262

2288

11658

11879

1260

1288

2250

2297

11635

11900

1252

1300

2238

2300

11574

11950

1250

1302

2232

2312

11542

12000

1248

 1312

2228

 2325

11500

12031

1243

 1325

2225

 2337

 

12125

1235

 

2213

 2345

 

 

 

 

 

 

 

 

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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