StreetOne Technical Analysis, LLC Market Summary 5/24/2011

                                                     StreetOne Technical Analysis, LLC

                                                                                   D.Chojnacki

 

Market Summary-05/24/2011

After a moderate gap down at the open, the Market traded in a narrow range for the remainder of the session. The indices closed off their lows of the day. At the close, the DJIA was off 1%, the S&P down 1.1%, and the Nasdaq100 losing 1.4%.  Breadth was negative, 3.7 to 1, on below average volume. The ROC(10) remains negative and is declining for all three major indices. The indices all closed below their 50D-SMA.  This was the first session we closed below the 50D-SMA. RSI’s remain weak and below 50. The DJIA closed only a few points below its 50D-SMA. Near term support is now at 12375 and 12352.  Near term resistance is now at 12390 and 12427.  The RSI for the S&P dropped to 41, indicating the continuing weakness. Near term support is now at 1312-10 and 1300.  Near term resistance is now at 1325 and 1330.  The Nasdaq100 gapped down at the open, below the 50D-SMA, and was never able to regain the benchmark. Near term support is now 2312 and 2300.  Near term resistance is now at 2325 and 2332.  The UUP(PowerShares US dollar) gained 0.65% yesterday on the weakness in the Euro. Look for the UUP to test resistance at the 22.00 level. The VIX moved up for the second straight session, gaining 4.9% to 18.27.   

 

Trading Trends

Long term, the bias remains to the upside for all three major indices. Short term bias is turning to the downside.  A confirmation of the averages below the 50D would indicate further downside action.  Near term, the  technical weakness has increased, as the indices closed below their 50D-SMA. We would expect to test 1297-1300 area in the S&P and the 2300 level in the Nadaq100.  Look for the DJIA to gravitate towards the 12125 area.  Futures this morning are pointing to a small bounce at the open, but sustainability is suspect.  Futures at(8:00am) are slightly higher versus fair value.  The Mid East crisis(oil), Euro debt crisis, and the U.S. economic recovery confirmation are the top Market movers.

 

 

 

Major Economic Reports Today:

New Home Sales-10:00am       

                                                                               

MAJOR INDICESShort term support and resistance level
DJIA close 12381		SP500 close 1317		N100 close 2316
12375	12390	1312	1320	2312	2322
12352	12415	1310	1321	2300	2325
12250	12427	1300	1322	2288	2332
12211	12500	1297	1325	2283	2336
12125	12507	1288	1328	2276	2341
12070	12548	1275	1330	2275	2345
12000	12550	1262	1335	2262	2348
	12649		1339	2250	2350
			1343		2359

 

 

 

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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