David Chojnacki S1F Market Technician
The Market began its rally from the opening bell and built momentum throughout the session into the close. The major indices were up from just below 1% for the DJIA, to 1.4% for the Nasdaq100. The S&P closed up 1.1% and above its July high of 1353. The DJIA and Nasdaq100 closed at new highs once again. Breadth was decidedly positive, 3 to 1, on average volume. Near term strength remains strong and RSI's are near over-bought condition. All three major indices developed 'engulfing' candles eliminating the prior day's loss. ROC(10's) are positive, but declined in the last session for the DJIA and S&P as momentum has slowed. We also have a MACD below signal for the two indices. The VIX lost 9% in the session to close back below the 20 level. We have
some mixed signals in near term technical indicators so the rally needs to be traded with caution at these levels. Every time it looks like we may get a correcting pullback, the selling is bought. The DJIA now has resistance set for the 13000 and 13125 levels. It has been finding support near its 20D-SMA, which currently is 12778. Support can also be found at 12810 and 12724. The S&P closed above 1353 for the first time and now sets its sight on the April'11 high of 1363. Support is now the 1353 and 1343 levels. The Nasdaq100, which closed at a new high, now has 2600 as its next resistance level. Above this level there is resistance at 2625. Support is at 2575 and 2550. Futures, early this morning, are slightly higher versus fair value.
Major Economic Reports Today
CPI-8:30am Leading Indicators-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