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StreetOne Technical Analysis, LLC Market Summary-02/24/2011

by David Chojnacki

The Market continued its downward trend at the open and only caught a bid near 1 PM. The indices stabilized somewhat in the PM, but then met further selling in the last half hour.  We closed off the lows and losses were not as steep as the prior session.  At the close, the DJIA was off 0.88%, the S&P500 was down 0.6%, and the Nasdaq100 lost 0.94%.  Breadth was negative, 1.6 to 1, on above average volume for the second straight session.  The MACD continues below signal on all three major indices and the DJIA and S&P500 closed below their 20D-SMA.   The 10D-EMA is now declining for the big three.  The DJIA found support near 12063 during the session and closed off its low.  Near term support is now 12000 and 11950.  The DJIA near term resistance is now 12125 and 12144(20D-SMA).  The S&P500 tested the 1300 level, and managed to close just above.  1300 is not a ‘strong’ support level.   Near term support now sets up as 1300 and 1288.  Near term resistance is now 1312 and 1325.  The Nasdaq100 closed just below its bottom trend line(2322) and found support at 2300.  Near term support is now 2300 and 2288.  Near term resistance is now 2312 and 2325.  Once again money flowed toward gold, silver and oil.  The VIX moved up again, 6.3% to 22.13.  Significant resistance near 23.  

 

Trading Trends

Long term, the bias remains to the upside for all three major indices.  Short term, bias has swung to the downside.  Near term, weakness continues.  The S&P500 is now down 2.6% from its recent high and will probably test the bottom trend line(1280) and the 1275 area.  This would account for about a 5% correction.  The DJIA seems to want to gravitate toward the 11850’s area.  Since the July ‘10 low, we have only had 7% and 3.6% corrections.  Several key economic reports today.  Futures at(8:15am) are lower versus fair value.  The Mid East crisis and U.S. economic recovery confirmation are the top Market movers.

 

 

Major Economic Reports Today:

Initial/Continuing Claims-8:30am   Durable Orders-8:30am   FHFA Housing Index-10:00am                                New Home Sales-10:00am    Crude Inventories-11:00am                                                 

 

 

MAJOR INDICES Short term support and resistance level

DJIA

close 12105

SP500

close 1307

N100

close 2300

12000

12125

1300

1312

2300

2312

11950

12144

1288

1315

2293

2325

11900

12218

1287

1323

2292

2337

11881

12250

1285

1325

2288

2345

11867

12312

1281

1337

2275

2350

11852

12375

1280

 1350

2271

 2354

11851

12400

1275

 1363

2270

 2362

11823

12425

1262

 1388

2262

 2375

11734

 

1250

 

2250

 

 

 

Trade Ideas

None today.

S1F in the News: http://www.streetonefinancial.com/news.html

 

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