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

Today's Technical Outlook - 12/28/2012

Market Summary

David Chojnacki S1F Market Technician

Poor Claims numbers and diminishing hopes for a fiscal deal set the major averages to the downside after the first half hour. With weakening technicals contributing to the drop in prices, the indices were off more than 1% by mid PM. The averages turned around in the last hour and a half to close with only minor losses. The turn-around may have been technical or a result of an announcement that Congress would be coming back to town on Sunday night. At the close, the DJIA dropped 18 points, the S&P slipped 1.7 points, and the Nasdaq100 giving up 4.2 points. Breadth was negative, 1.2 to 1, on light volume. RSI's slipped a few more points to the mid and upper 40's for the major indices. ROC(10's) continued in negative territory, but advanced in the session. During the session's weakness, the DJIA slipped below its 200D-SMA and the S&P was briefly below its 50D-SMA. The S&P joined the other two major averages, seeing its MACD fall below signal. Once again some of the weakening short term technicals signal caution to the rally which began in mid-November. Of specific concern is the Nasdaq100, which remains below the 50% retracement level and fell below the Fibonacci 61% retracement level in yesterday's session. During the session, it touched the bottom of the recent trading range(2600), but bounced off to finish comfortably above at 2632. Look for support at 2625 and 2600. On the upside resistance can be found at 2650 and 2661. The S&P closed just below support of 1419-1425. During the session it tested near the 1400 level and traded below its one year trend-line, which is near 1412. Look for 1409-1412 to remain as support, but a close below would signal a move toward the 1371-75 area. 1420-25 becomes resistance, with the next level at 1435. Any kind of a fiscal deal looks to be weak, or delayed. Any near term optimism will probably be short lived. Markets are weak overseas and Futures are lower before the open.

Major Economic Reports Today

Chicago PMI-9:45am Pending Home Sales-10:00am Nat Gas Inventories-10:30am Crude Inv.-11:00am

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