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StreetOne Technical Analysis, LLC Market Summary 9/06/2011

                                                     StreetOne Technical Analysis, LLC
                                                                                   D.Chojnacki
 
Market Summary-09/06/2011
A disappointing Employment Report was the catalyst for a large gap-down at the open on Friday. The weakness continued throughout the session and the major indices closed down nearly 2.5% in the session.  At the close, the DJIA was down 2.2%, the S&P lost 2.5%, and the Nasdaq100 giving up 2.3%. Breadth was negative, nearly 5 to 1, on average volume.  For the week, there was little change in the indices, with the Nasdaq100 up 0.2%, and DJIA and S&P losing less the then a half per cent. RSI’s dropped to the mid 40’s and the ROC(10) is positive, but declined slightly in Friday’s session.  All three major indices found support during Friday’s session just near their 20D-SMA. Near term technicals weakened significantly in the last two sessions. Near term support for the DJIA is now at 11226(20D-SMA) and at 11200. Resistance on the upside is near 11485. We continue to see the 1175 to 1225 area as a neutral trading range for the S&P. We spent all last week in this area. Above 1225 we see the potential for short term upward bias. Below the 1175 level and we may test 1120  again. The Nasdaq100, held the 20D-SMA(2151) on Friday, which is a positive sign for a potential bounce. A drop below the 20D and we test the 2050 area again. The VIX gained 6.6% to close at 33.92, still fairly high.
 
Trading Trends
Long term, the bias remains to the downside.  Short term technicals continue to improve but bias remains to the downside. Near term technicals deteriorated significantly in the last two sessions.  The S&P closed just below 1175 indicating a downward bias.  For the S&P, we continue to see downward bias in the S&P below 1175, 1175 to 1225 a neutral trading zone, and above 1225 upward bias.  Volatility remains high and needs to be factored into trading strategies.   Future’s at (8:00am) are considerably lower versus fair value. 
 
Major Economic Reports Today:
ISM Services-10:00am                                                                                                                                                                   
                                            
                                                                                                                     
MAJOR INDICESShort term support and resistance level
DJIA
close 11240
SP500
close 1173
N100
close 2167
11226
11248
1172
1175
2161
2175
11200
11255
1165
1188
2151
2181
11139
11345
1156
1192
2150
2184
11000
11367
1152
1200
2137
2188
10880
11484
1150
1204
2125
2200
 
11485
1137
 1208
2100
 2212
 
11500
1120
 1218
2088
 2225
 
11550
1101
 1225
 
 2239
 
 
 
 
 
 
 
 
 
Trade Ideas
None today.


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