StreetOne Technical Analysis, LLC Market Summary 5/18/2011

                                                             StreetOne Technical Analysis, LLC

                                                                                   D.Chojnacki

 

Market Summary-05/18/2011

Another weak start and break thru some key technical levels which sent the indices to moderate losses in the AM. A buying of the dip in the PM, lead the Market back to parity and a small gain for the Nasdaq100.  At the close, the DJIA was down 0.5%, the S&P losing just 0.49 points, and the Nasdaq100 moving up 5.6 points. Breadth was negative, 1.3 to 1, on slightly above average volume. All three major indices remain with their ROC(10) negative, but advanced in the last session.   The S&P and Nasdaq100 traded below their 50D-SMA during the session and the DJIA came within 20 points, before they reversed and closed above. The RSI for all three major indices remains below 50. The DJIA developed a ‘hammer , which may signal a move back to the upside.  Near term support is now at 12425 and 12412.  Near term resistance is now at 12500 and 12550.  The S&P closed right at its 50D-EMA and also developed a ‘hammer’. Near term support is at 1328-1324 and 1320.  Near term resistance is now at 1332 and 1343.  The Nasdaq100 was the only index of the big three to close in positive territory.  Near term support continues at 2333 and 2322.  Near term resistance remains at 2348-50 and 2375.  The (Russell 2000) remained below its 50D-SMA, losing 2.5 points. The VIX lost 3.7% to 17.55.  

 

Trading Trends

Long term, the bias remains to the upside for all three major indices. Short term bias to the upside continues, but is in jeopardy.  Near term, a reversal mid-session avoided a precipitous fall. Weakness remains and the 50D-SMA once again becomes key to near term direction. 50D-SMA-(S&P-1324, Nasdaq100-2333, DJIA-12358). A break below sends the S&P to test 1300 area.   A break in this area would see the Nasdaq100 test the 2300 level. Futures at(8:00am) are slightly higher versus fair value.  The Mid East crisis(oil) and the U.S. economic recovery confirmation are the top Market movers.

 

 

Major Economic Reports Today:

MBA Mortgage Index-7:00am    Crude Inv.-10:30am   FOMC Minutes-2:00pm                                                                                            

                                                                              

MAJOR INDICESShort term support and resistance level
DJIA close 12479		SP500 close 1328		N100 close 2343
12425	12500	1328	1330	2333	2348
12412	12507	1325	1332	2329	2350
12375	12550	1324	1339	2325	2362
12358	12609	1320	1340	2322	2374
12349	12626	1312	1343	2300	2375
12250	12650	1309	1344	2288	2383
12125	12715	1300	1345	2276	2388
	12745	1289	1350	2275	2397
		1276	1363		2400

 

 

Trade Ideas

None today.

 

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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