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StreetOne Technical Analysis, LLC Market Summary-03/04/2011

by David Chojnacki

The Market gapped up at the open and held that momentum into the close.  We have now erased a good deal of the prior week’s pullback, but the up days have been on slower volume then the down days.  Event risk has had a big impact on the volatile trading.  At the close, the DJIA was up 1.5%, the S&P500 gained 1.7%, and the Nasdaq100 up a healthy 1.9%.  Breadth was positive, 3.5 to 1, on below average volume.  All three major indices moved above some near term technical levels(moving averages, trend lines), however, some near term weakness remains.  The DJIA near term support is now 12195 and 12125.   Near term resistance sets up as 12312 and 12375.  The S&P500 is again nearing the formidable resistance area of 1337-1350.  Near term support is now at 1325 and 1312.  Near term resistance sets up as area mentioned above.  The Nasdaq100 moved back above its bottom trend line and is making a move toward last week’s highs.  Near term support sets up as 2362 and 2350.   Near term resistance is now 2375 and 2388.  The GLD and SLV pulled back from their recent highs, along with oil.  The VIX lost a significant 10.1%, to close below 20 again, at 18.60.

 

Trading Trends

Long term, the bias remains to the upside for all three major indices.  Short term, bias continues to be whip sawed.  Indicators now pointing downward, making short term trades difficult.  The recent range can be traded which for the S&P is 1294-1343.  Near term, technicals are mixed as choppy trade continues.  The S&P needs to move thru 1337-1350 for a more pronounced move to the upside.  Choppy action at a top can also indicate a more significant top being established.  Employment report today.  Futures at(8:15am) are slightly higher versus fair value.  The Mid East crisis and U.S. economic recovery confirmation are the top Market movers.

 

 

Major Economic Reports Today:

Employment Report-8:30am    Factory Orders-10:00am

 

 

 

MAJOR INDICES Short term support and resistance level

DJIA

close 12258

SP500

close 1330

N100

close 2371

12195

12312

1325

1337

2362

2375

12167

12375

1322

1340

2354

2388

12125

12383

1319

1343

2350

2400

12007

12392

1312

1344

2345

2412

12000

12400

1300

1350

2337

2413

11950

12425

1299

 1363

2325

 2425

11900

12500

1295

 1375

2312

 2437

11867

12550

1294

 1388

2308

 

 

 

1293

 

 

 

 

 

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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