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StreetOne Technical Analysis, LLC Market Summary 8/8/2011

StreetOne Technical Analysis, LLC
                                                                                   D.Chojnacki
 
Market Summary-08/08/2011
Another volatile day in a very weak Market. After being up 170 points in DJIA early, it then traded down 250 points and then closed with a small gain. At the close, the DJIA gained 60 points, the S&P off just 0.69 points, and the Nasdaq100 losing 0.5%.  Breadth was decidedly negative, 2.5 to 1, on heavy volume. For the week, the DJIA lost 5.7%, and the S&P and Nasdaq100 giving up 7.1%.  Major technical support levels were broken in all three major averages during the week. The DJIA and S&P are breaking long term trend indicators and the primary uptrend bias since 2009 is in jeopardy. The ROC(150) is now negative and declining for all three indices indicating the longer term weakness. All three are below their lower Bollinger Band and RSI’s are in over sold territory.  Look for the DJIA to hold support near a congestion area of 11255 to 11000. Near term resistance will be near 11500.  The S&P managed to find support just near the 1175 area, which is the lower end of a congestion area that finds 1200 at the top.  Short term resistance is near 1225. It did form a ‘doji’ on Friday, which is a reversal indicator. The Nasdaq100 longer term technicals have weakened, but have not completely broken down.   It has a congestion area of support near 2165-2116.  The VIX gained 1% to 32.00.
 
Trading Trends
Long term, the upside bias for the DJIA and S&P  remains in jeopardy.  Nasdaq100 still remains intact.  We will look for confirmation of breakdown of primary trend.  Short term, technicals are weak now for all three major indices. Near term, technicals are extremely weak.  We are becoming near term over-sold.  Look to trade between 1175 and 1225 in the S&P.  Below 1175 will be pointing to a downside trend, while above 1225 may signal an end to correction. Weak futures this morning, resulting from debt downgrade will result in a poor open.  Future’s at (8:00am) are significantly lower versus fair value. The Euro debt crisis, and the U.S. debt situation are the top Market movers.
 
Major Economic Reports Today:
No reports scheduled
                                                                                                                                                                   
                                                                                                                                                 
                                                                                                                                                                  
MAJOR INDICESShort term support and resistance level
DJIA
close 11444
SP500
close 1199
N100
close 2194
11435
11500
1188
1200
2193
2200
11345
11550
1175
1212
2188
2203
11255
11613
1168
1218
2175
2212
11254
11734
1150
1225
2165
2225
11200
11823
1125
1237
2150
2228
11139
 
1120
 1250
2137
 2239
 
 
 
 
2125
 2250
 
 
 
 
 
 2262
 
 
 
 
 
 2275
 
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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