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StreetOne Technical Analysis, LLC Market Summary-02/22/2010

|Includes: EEM, FXI, GLD, MOO, QQQ, SPY, Financial Select Sector SPDR ETF (XLF), XLY
The Market opened weak again, gained some strength midday, but then waned into the close, with little or no change for the session. At the close, the DJIA was up 9 points, the S&P500 up 2 points and the Nasdaq100 unchanged. For the holiday shortened week, we had decent gains, with the DJIA up 3%, the S&P500 up 3.1% and the Nadaq100 up 2.4%. The indices have now put some distance from important support levels and their 200D-EMA.We’ve also retraced better then 50% of the recent correction in all three major indices.Volume was slightly stronger then recent sessions. Over all, the technical landscape has improved the last few sessions, however, we are nearing a congestion area. The Russell 2000, has displayed moderate strength with a big bounce off its recent low, a positive cross in the MACD, and about to have the 20D-EMA cross back above the 50D-EMA. This could be foretelling of a more concentrated shift to secondary issues. The Financials (XLF), moved up .08 to 14.46. Strong resistance remains between 14.40 and 14.50. Support remains at 14.40, 14.30, 14.15, 14.00, 13.75 and 13.50. Resistance now at 14.50, 14.60, and 14.75. GOLD(GLD) closed at 109.47. Having difficult time holding 109.80, a buy signal, but is maintaining support near 109.00 which is also 50D-SMA. The VIX closed down 2.9% to 20.02.
 
Trading Trend
Long term, we’ve retraced over 50% of correction and if we can hold, upward bias will resume. Short term, bias has reversed to the upside, but we are right near congestion area. Near term, bias has been to the upside on weak volume. We are in a congestion area and may experience additional resistance.  Today’s futures(at 8:15am) are slight to moderately higher versus fair value. Economic growth indicators and U.S. Treasury funding have become the new key Market movers.
 
Major Economic Reports Today:
No major reports scheduled
 
MAJOR INDICES- Short term support and resistance levels.
DJIA-(close 10402) SP500-(close 1109)   N100-(close 1823)
 
    S           R                  S         R                    S          R
10355    10500            1108   1115              1820     1830
10279    10540            1103   1120             1812     1840
10247    10544            1100   1128              1800    1845
10245    10650            1098   1130              1795     1850   
10200    10725            1093   1135              1783    1862
10150                          1092   1143              1775         
10000                          1085   1150              1758                                                              
 9945                          1080                        1742                 
 9925                          1070                                                        
 9850                          1059                         
 
Options /Derivative Flows
Late last week we saw large buyers of SPX (S&P 500 Index) March 1225 calls, which equated to about a $7 billion trade.  These are very far out of the money calls, so the market impact was not huge on this trade, but the prints captured attention nonetheless. Last week put buyers were present in FXI (iShares FTSE Xinhua China) specifically in out of the money strikes in February, March, and May.  In MOO (Market Vectors Agribusiness), opening volatility buyers have been present in size, purchasing May 47 calls delta neutral.  In XLY (SPDR Consumer Discretionary Select), there has been protective put buying, possibly hedging long positions from a short term reversal in purchasing the June 26 and June 27 puts.  ""In EEM (iShares MSCI Emerging Markets) we saw bearish/protective options activity on Friday. The March 39 bearish combos were purchased (buy puts, sell calls) 50,000 times.  After falling to a multi-month low in early February, EEM has rallied over 8% off that low. In XLF (SPDR Financials), we saw similar activity as there were buyers of the March 14 puts and sellers of the March 15 calls, with likely similar sentiments as the EEM investors.  Also in QQQQ (PowerShares Nasdaq 100) we saw buyers of downside puts, specifically the March 44 line, at least 50,000 contracts."


Disclosure: No positions