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StreetOne Technical Analysis, LLC Market Summary-02/12/2010

|Includes: FAZ, FXI, GLD, QID, RSX, UDN, UUP, Financial Select Sector SPDR ETF (XLF)
The Market opened slightly weaker, gained some strength late morning and then traded sideways into the close. At the close, the DJIA and S&P500 were up nearly 1%, with the Nasdaq100 up 1.4%. Advancers outpaced decliners 3 to 1. All three averages moved above their 20 week –EMA, but just barely, and also above their 10D-EMA.. The Nasdaq100 and the S&P500 closed right at resistance levels; ( 1775 and 1078 respectively). TheS&P500 remains within reach of its 200D-EMA( which is 1047). The DJIA held above 10000, but closed just below resistance of 10150. The Financials (XLF), changed little, closing up .03 to 13.94. It remains below its recent trading range of 14-14.50, and below its 200D-EMA(14.10). Support remains at 13.75, 13.50, 13.25 and 13.00. Resistance now at 14.00, 14.15, 14.30 and 14.40. GOLD(GLD) had a good day moving up nearly 2% to 107.13. It continues to hold the 104-104.50 area of support. The VIX  closed down 2.3% to 25.40.
 
Trading Trend
Long term, we remain in a correction, below ten month trading channel and 50% retracement levels in the DJIA and S&P500. Short term, bias remains to the downside. Near term, a good session to the upside, but volume was lackluster, displaying little conviction. Earning’s season begins to wind down this week. Today’s futures(at 8:15am) are moderately lower versus fair value. Economic growth indicators and U.S. Treasury funding have become the new key Market movers.
 
Major Economic Reports Today:
Retail Sales-8:30am     Mich.Sentiment-9:55am   
 
MAJOR INDICES- Short term support and resistance levels.
DJIA-(close 10144)                       SP500-(close 1078)                 N-100-(close 1775)
 
    S                  R                               S                 R                              S                R
10112          10150                         1078            1080                        1775           1786
10000          10200                         1070            1085                        1765           1798
 9925          10206                         1050            1090                        1758           1800
 9850          10274                         1047            1098                        1742           1820   
 9778          10355                         1035            1100                        1735           
 9728          10500                         1033            1105                        1730           
  9725          10540                        1030           1115                        1720                                                                
 9650                                             1025                                            1700                   
                                                                                                                          
Options/Derivative Flows
"In GLD (SPDR Gold Trust) we have seen buyers of longer term upside, through the January 2011 115 calls specifically.(See note above)  Consistent with this theme in the XAU (Gold/Silver Miners Index), there have been buyers of calls and sellers of puts in combo trades, which is certainly a bullish play.  RSX (Market Vectors Russia) options continue to be active as we have highlighted downside put buying recently, and we saw buyers of March 27/24 put spreads in the past few sessions." 
 
Trade Ideas
FXI(Ishares FTSE China Index)-Closed 39.68. A buy over 39.50. First resistance near 41.00
FAZ(Financials Bear-3X)- Closed down to 20.58. May be in limbo, till we get above 21.20. There is some support at 20.50. Next resistance at 22.20 and 23.00.
QID(Proshares Q’s ultra short)-Closed down 3% to 20.57. Remains a buy over 21.40. Support at 20.40 and 20.10. Resistance at 22.00-22.25.
UUP(Powershares U.S. Dollar)- The UUP continues to meet resistance near 23.70 area. Conversely, the UDN(Powershares Dollar Bearish) has support near 26.50, but remains below its 10 and 200D-EMA’S.

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