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StreetOne Technical Analysis, LLC Market Summary 8/22/2011

                                                     StreetOne Technical Analysis, LLC
                                                                                   D.Chojnacki
 
Market Summary-08/22/2011
The week began with the indices trying to regain some stability from the wild swings in the prior week. On Thursday and Friday the selling resumed with volume picking up again. At the close on Friday, the DJIA and S&P were off 1.5%, and the Nasdaq100 losing 1.6%.  Breadth was decidedly negative, 3 to 1, on above average volume.  For the week, the DJIA lost 4%, the S&P losing 4.6%, and the Nasdaq100, the big loser, down 6.5%. While the ROC(10) has shown some improvement, the RSI’s are near the low 30’s and approaching over-sold conditions once again.  The DJIA remains the only index of the big three to not have its 50D-SMA move below its 200D-SMA, however, they are now equal as of Friday’s close. The DJIA did hold its recent closing and intra-day lows. Look for support at 10719 and 10604. The S&P remains in a downward bias, however, we see support at the recent closing lows just near 1120. The Nasdaq100 closed below its recent closing low of 2060, but held above the intra-day low of 2034. Look for this to act as support. There is additional support at 2000-1996. The VIX has rocketed to extreme levels and sits at 43.05.  It did form a ‘hanging man’ on Friday, which may indicate a reversal near term. We will look for a declining VIX and lower volume to signal an end to volatility and heavy selling.  
 
Trading Trends
Long term, the primary trend line from 2009 and long term indicators have broken down. Short term technicals remain weak with the bias to the downward side.  We see downward bias in the S&P below 1175, however, recent support near 1120 seems to be holding for now.  Near term, technicals are weak as we approach over-sold conditions. This morning’s futures suggest we get a bounce at the opening.  Volatility remains high and any movement in one direction may be brief.   Future’s at (8:00am) are higher 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 10817
SP500
close 1123
N100
close 2038
10800
10880
1120
1130
2034
2050
10719
10936
1103
1150
2025
2060
10604
11000
1101
1152
2000
2078
10500
11139
1100
1168
1996
2100
 
11200
1091
1175
1975
2125
 
11238
1088
 1188
1960
 
 
11248
1075
 1192
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                                                                                                                                 
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
This publication is neither an offer to sell nor a solicitation to buy any securities mentioned herein. The information contained herein is based on data obtained from recognized sources that are believed to be reliable. Street One Financial LLC (S1F) have not independently verified the facts, assumptions and estimates contained in this publication. Accordingly, no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions contained in this publication. The information contained in this publication is not and does not purport to be a complete analysis of every material fact respecting any company, industry, ETF or other security. Additional information concerning this publication may be available on request, if available. Many of the securities mentioned in this publication involve a higher degree of risk and more volatility than the securities of more established securities. For these and other reasons, the investments discussed in this publication may be unsuitable for investors depending on their specific investment objectives and financial position. Each investor should complete his or her own additional investigation and assessment prior to making investments in any securities. Transactions in securities mentioned herein may be effected only in those states where such securities are qualified for sale. Street One Technical Analysis LLC is an independently owned Company from Street One Financial LLC (S1F). S1F is an independent Company specializing in ETF’s, equities, and options. S1F specializes in agency ETF/ETP, equities, and options trade execution. On the ETF/ETP end, S1F may work with the ETF issuers to understand their products more thoroughly and how they can complement an investor's portfolio