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StreetOne Technical Analysis, LLC Market Summary 10/17/2011

                                                     StreetOne Technical Analysis, LLC
                                                                                   D.Chojnacki
 
Market Summary-10/17/2011
A strong finish to Friday’s session, punctuated the strength that we saw in the Market all week. At the close, the DJIA was up 1.4%, the S&P gained 1.7%, and the Nasdaq100 added a strong 1.9%.   Breadth was decidedly positive, 4 to 1, but again on very weak volume. For the week, the gains were significant with the DJIA moving up 4.8%, the S&P up 5.9%, and the Nasdaq100, a very strong 7.6%. RSIs have moved into the low 60’s for the major averages, with ROC(10)’s positive and rising.  Near and short term technicals  have improved significantly. The S&P and DJIA closed just above the recent trading range, while the Nasdaq100 moved comfortably above. We will look for confirmation of the move out of range, as we had a false breakout to the downside two weeks ago. The S&P has good resistance near the 1225 to 1230 area and moving averages remain inverted.  We would also like to see volume increase on any move out of the range.  The chart pattern suggests additional consolidation before a bigger move to the upside. The Russell 2000 did not confirm a breakout, as it closed at 712, below the top of range which is 728. The Nasdaq100 has been a Market leader and it is suggesting a move back to the highs of July at 2429. The VIX finally broke the 30 level, to close at 28.24.
 
Trading Trends
Long term, the bias remains to the downside.  Short term technicals have improved significantly and the DJIA and S&P are trying to move out of the recent trading range, following the Nasdaq100 lead.  Near term technicals have been strong to the upside, however, volume remains suspect. With volatility decreasing, near term moves may stabilize some.   Earnings reports increase this week and will have Market impact.  Several key Economic reports are on the agenda this week. It will be an important week, as we also approach key milestones at technical levels.  Future’s at (8:00am) are slightly lower versus fair value.
 
Major Economic Reports Today:
Empire Manufacturing-8:30am   Industrial Production/Capacity Util.-9:15am                                             
                       
                                                                                                                    
MAJOR INDICESShort term support and resistance level
DJIA
close 11644
SP500
close 1224
N100
close 2371
11613
11706
1212
1225
2362
2375
11500
11716
1200
1230
2350
2376
11485
11722
1191
1232
2337
2388
11400
11840
1188
1236
2325
2400
11352
11956
1186
1250
2312
2429
11332
11958
1175
 1263
2300
 2438
 
 
1167
 1267
2292
 2450
 
 
1150
 1275
 
 
 
 
 
 1276
 
 
 
 
 
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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