Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Today's Technical Outlook - 12/17/2012

Market Summary

David Chojnacki S1F Market Technician

After a flat opening, there was little during the session on Friday to excite traders and the major averages responded by trending to the downside during the day. At the close on Friday, the DJIA slid 35 points, the S&P lost 0.4%, and the Nasdaq100, the big loser, dropping nearly 1%. Breadth was slightly negative, on average to slightly below average volume. For the week there was little change: DJIA off 0.1%, S&P down 0.3%, Nasdaq100 sliding 0.4%. The Nasdaq100, once again, is beginning to show the weakness we saw in the beginning of November. It's testing longer term technical signals; below 200D-SMA(2672), 50D crossed below 200D, and below the 50% retracement level of June to September upside rally . Near term RSI's of the major averages are still relatively bullish, and the DJIA and S&P have not completely violated short term technical indicators. The S&P did move below it is 50D-SMA(1415) and is approaching its one year trend-line support near 1411. Since the middle of November, we have been in a trading range that may only be broken by an out come to the fiscal policy discussion. The Nasdaq100 has traded roughly between 2600-2700, the S&P between 1375 and 1435 in that timeframe. This week we get some key housing numbers and GDP, but all eyes will remain on the D.C. discussions.

Trading Trends

David Chojnacki S1F Market Technician

Long term, we once again have the Nasdaq100 testing longer term technical levels. We are firmly entrenched in a trading range(see above) on all three major averages and this will be key in detecting any major change in bias. For now, long term bias remains positive. Short term, we have a mixed picture, with the Nasdaq100 bias to the downside, and the DJIA and S&P testing levels but still positive. We will be watching the 1371 and 12851 levels for the S&P and DJIA respectively, for indications of short term bias breaking down. Near term, we see the averages staying within the trading range till a fiscal decision is reached. Bias will be volatile within the range. Futures are mixed early this morning, with the Nasdaq100 pointing to a lower open.

MAJOR INDICESShort term support and resistance level
DJIA

close 13135

SP500

close 1413

N100

close 2628

13125 13202 1412 1415 2625 2642
13119 13300 1409 1420 2613 2650
13076 13400 1407 1422 2612 2653
13003 13550 1400 1425 2600 2661
13000   1396 1435 2588 2663
12987   1394 1450 2575 2667
12950   1388 1462 2550 2672
12851   1387 1465 2525 2675
12810   1375 1475   2688

Major Economic Reports Today

Empire Manufacturing-8:30am Net Long-Term TIC Flows-9:00am

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