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StreetOne Technical Analysis, LLC Market Summary-03/21/2011

by David Chojnacki

Early strength in the Market could not sustain.  A slow  steady decline after the first hour lasted into the close, however, the DJIA and S&P managed a small gain, while the tech heavy Nasdaq100 had a small loss.   At the close, the DJIA was up  0.7%, the S&P500 gained 0.4%, and the Nasdaq100 losing 0.19%.  Breadth was positive, 2.6 to1, on just above average volume, with the Nasdaq100 volume being heavier.  For the week, the DJIA lost 2.2%, the S&P dropping 2.3%, and the Nasdaq100 giving up 3.3%.  All three major indices remain below their bottom trend line, but saw their ROC(10) rise, while remaining negative.  The DJIA met resistance during the session at its 10D-EMA, but did close above 11850.  Near term support is now 11850 and 11734.  The near term resistance now sets up as 11867 and 11900.  The S&P also met intra-day resistance at its 10D-EMA, but closed just above the critical 1275 level.  Near term support is 1275 and 1262.  Near term resistance is now 1288 and 1294.  The Nasdaq100 remains below critical support of 2262, and 2007 high(2239). With an RSI of 35, it is approaching oversold territory.  Near term support remains at 2217 and 2200.  Near term resistance is 2225 and 2239.  The VIX dropped 7.3% to 24.44. 

 

 

Trading Trends

Long term, the bias remains to the upside for all three major indices.  Short term, bias continues to the downside, as we are meeting resistance at key technical levels.  Near term technicals remain weak and volatility is high, however, this morning’s futures suggest we continue Friday’s bounce.  Look for the indices to get above and hold these levels for near term strength to the upside: DJIA-11850, S&P-1275, Nasdaq100-2239=2262.  Event risk continues to plaque the Market, with Mid East and oil prices highlighting today’s focus, along with merger news.  Futures at(8:15am) are significantly higher versus fair value.  The Mid East crisis, Japan, and U.S. economic recovery confirmation are the top Market movers.

 

 

Major Economic Reports Today:

Existing Home Sales-10:00am

           

 

MAJOR INDICES Short term support and resistance level

DJIA

close 11858

SP500

close 1279

N100

close 2221

11850

11867

1275

1288

2217

2225

11823

11900

1265

1290

2213

2237

11734

11923

1262

1293

2210

2239

11709

11946

1250

1294

2200

2250

11658

11950

1243

1300

2195

2262

11635

12000

1235

 1303

2188

 2267

11555

12015

1225

 1306

2175

 2270

11500

12066

1217

 1312

2162

 2275

11444

12250

1215

 1325

 

 2288

 

 

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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