David Chojnacki S1F Market Technician
The DJIA and S&P have put together three straight up days to remain above the recent trading range. The major indices gained from 0.9% to 2% in yesterday’s session. Breadth was decidedly positive, 5 to 1, but once again volume was very weak. Near term and short term technicals remain fairly strong, and indications are that the indices want to retest their April and July highs. The remaining concerns are the recent short term rally has been on lethargic volume and we still have a VIX which is fairly high. Yesterday’s session saw the VIX drop 6.5% to below the 30 level, for one of the few times in recent weeks. We would like to see some continuation of a lower VIX to reinforce the upside move. The S&P will next meet resistance at the 1263 to 1275 area, which encompasses several key
technical milestones, such as Fibonacci retracement level(.61), 150D and 200D-SMA’s. Support for the S&P becomes the 50% retracement level of 1236. Look for the DJIA to find support at 11722 and resistance at 11958 to 11965. The Russell 2000 confirmed the move out of the trading range with a close at 736, above the range closing high of 728. The Nasdaq100 continued with its move to the upside and is now only 45 points from its July closing high of 2429. Look for the Nasdaq100 to find support near the 2325 level. Earnings reports continue today and Futures this morning are pointing to a slightly higher opening.
Major Economic Reports Today
Case-Shiller Index-9:00am Consumer Confidence-10:00am FHFA Housing Price Index-10:00am
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