David Chojnacki S1F Market Technician
The Market followed through with another strong move to the upside. The major indices were up between 1.2 and 2.5% on just about average volume. Breadth was positive nearly 3 to 1. The last two days saw the S&P bounce up 4% since breaking below the recent trading range. This improved near term technicals, with RSI’s now in the mid to upper 40’s and ROC(10)’s on the advance. Short term weakness remains as we continue below key averages and MACD continues to be negative. Look for the S&P to find support at 1120 and 1103, with near term resistance on the upside at 1145 and 1164(20D-SMA). The DJIA will find some resistance near 11090, with support at 10880 and 10800. The Nasdaq100 closed below 2200 and we look for it to move above this level to find
additional upside strength. Look for 2175 and 2150 to provide near term support on the downside. The VIX declined 7.3% in yesterday’s session to close at 37.8. This remains relatively high and volatility will continue in the Market. This makes these near term swings susceptible to quick reversals. Tomorrow we get the Employment Report and though it is a lagging economic indicator, recent months have shown strong Market reaction. Today’s Initial Claims Report may also have some impact. All eyes continue to watch Europe for any signals to a resolution of the debt crisis. Futures this morning have been very volatile, but currently are indicating slight weakness at the open.
Major Economic Reports TodayInitial/Continuing Claims-8:30am
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