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StreetOne Technical Analysis, LLC Market Summary-02/18/2011

by David Chojnacki

After a weak open, the Market reversed and made a steady slow move to the upside.  By the final bell we had a mixed Market with small gains in the DJIA and S&P leading to new highs, while the Nasdaq100 was off by the slightest amount.  At the close, the DJIA was up 29 points, the S&P500 managed to gain 4.1 points, and the Nasdaq100 off just 0.37 points.  Breadth was positive nearly 2 to 1, on slightly below average volume.  The DJIA making another new high as its RSI moved up to 76.  The DJIA near term support now sets up as 12312 and 12250.  The DJIA short term resistance is now 12375 and 12400.  The S&P500 closed just above its top trend line of its up-sloping channel.  The S&P500 RSI has now moved up to 73.  Near term support now sets up as 1337 and 1325.  Near term resistance is now 1343 and 1350.  The Nasdaq100 met resistance intra-day at 2400 for the second straight session and closed just below.   Near term resistance remains at 2400 and 2412.  Near term support continues at 2388 and 2375.  The VIX off just 0.78% to 16.59, reversing the action of the last few days. 

 

Trading Trends

Long term, the bias remains to the upside for all three major indices.  Short term, bias continues to the upside.  Near term, a mixed session with near term bias remaining to the upside.  We continue to trade at new highs as we approach some significant resistance levels.  Expecting that we meet more formidable resistance in the S&P500 between the 1337 and 1350 area.  Options expire today and may impact today’s trading.  Futures at(8:15am) are slightly lower versus fair value.  The European debt crisis and U.S. economic recovery confirmation are the top Market movers.

 

 

Major Economic Reports Today:

None scheduled

 

 

MAJOR INDICES Short term support and resistance level

DJIA

close 12318

SP500

close 1340

N100

close 2397

12312

12375

1337

1343

2388

2400

12250

12400

1326

1347

2375

2412

12219

12425

1325

1350

2372

2417

12125

12500

1312

1363

2362

2425

12100

12550

1310

1375

2350

2437

12000

12600

1300

 1388

2338

 2450

11950

 

1288

 1400

2337

 

11900

 

1282

 

2325

 

11867

 

1281

 

 

 

 

 

 

Trade Ideas

None today.