David Chojnacki S1F Market Technician
The Market began the abbreviated week with another day to the downside, making it the third session in a row of losses. The big gap down at the open was met by buyers in the late morning and this continued till the close eliminating the big losses. The DJIA and S&P fell below their 20D-SMA during the day and met resistance at that level during the session. The Nasdaq100 traded below its 20D-SMA but managed to close back above. Breadth was negative about 3 to 1 on average volume. The drop of the S&P below 1175 put it back into a near term downward bias. Near term technical indicators are mixed and reflect the volatility present in the Market. The VIX moved up 9% in yesterday’s session to close at 37, maintaining the recent high levels. The
Bollinger Bands which reflect the recent wide trading range and volatility, have begun to close in. This may be the first sign of some calming in the Market. If this is true, we should also see the VIX begin to move to the downside. The DJIA and S&P developed a ‘Hammer’ in yesterday’s session, which is usually a reversal signal at the bottom of a range. Yesterday’s bounce off the weak open was a positive sign and a move back above 1175 in the S&P would put near term bias back to the upside. A word of caution, with volatility so high near term bias can swing from day to day or even intra session. Economic reports this week are light. Early futures indicate a positive open.
Major Economic Reports TodayFed Beige Book-2:00pm
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