StreetOne Technical Analysis, LLC
Dave Chojnacki
Market Summary-05/05/2011
The Market moved to the downside right from the opening bell. After losing nearly 1%, the indices reversed in the PM to cut their losses, but were weak again in the last hour. At the close, the DJIA and S&P were off 0.6%, while the Nasdaq100 lost only 5.2 points. Breadth was negative for the third straight session, 2.3 to 1, on just above average volume. The DJIA and S&P held the Feb. highs, despite the S&P losing ground for the third straight
session. The ROC(10)for the indices remains positive but continued to decline in the last session. Some of the recent overbought condition has been taken out of the indices. Watch for the indices to hold the Feb. high or we may see additional pullback. The DJIA bounced off its 10D-EMA during the session and its RSI finished at 65. Near term support is now at 12715 and 12664. Near term resistance is now at 12745 and 12800. The S&P closed near its 10D-EMA and held the Feb. high. Near term support is now at 1343(Feb. high) and 1339. Near term resistance is now at 1350 and 1363. The Nasdaq100 came back in the PM to close with only a small loss. It did, however, close again, just below its Feb. high. Near term support is now at 2384 and 2375. Near term resistance continues 2388 and 2397. The VIX up 2.2% to 17.08, for the fourth straight session.
Trading Trends
Long term, the bias remains to the upside for all three major indices. Short term bias to the upside continues. Near term, recent indications of a pullback began to take shape in yesterday’s session. Indications show that a break through the Feb. highs could take us to 1325-1330 in the S&P. Futures this morning are again indicating a weak open, but this is ahead of some economic news. Earnings continue this week. We also look ahead to the unemployment report tomorrow. Futures at(8:15am) are lower versus fair value. The Mid East crisis(oil) and the U.S. economic recovery confirmation are the top Market movers.
Major Economic Reports Today:
Initial/Continuing Claims-8:30am
Prod./Unit Labor Costs-8:30am
Prod./Unit Labor Costs-8:30am
MAJOR INDICESShort term support and resistance level
| |||||
|
DJIA
close 12723
|
SP500
close 1347
|
N100
close 2387
|
|||
12715 |
12745 |
1343 |
1348 |
2384 |
2388 |
12664 |
12800 |
1339 |
1350 |
2375 |
2397 |
12650 |
12833 |
1335 |
1363 |
2362 |
2400 |
12550 |
12897 |
1332 |
1371 |
2353 |
2412 |
12507 |
12900 |
1330 |
1375 |
2350 |
2425 |
12500 |
13000 |
1325 |
1388 |
2337 |
2430 |
12493 |
13058 |
1322 |
1400 |
2334 |
2437 |
1320 |
1412 |
2325 |
2450 |
||
1312 |
2462 |
||||
Trade Ideas
None today.
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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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