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StreetOne Technical Analysis, LLC Market Summary-02/26/2010

|Includes: SPDR Gold Trust ETF (GLD), IWF, IWM, TNA, UDN, UUP, VXX, XHB, XLF

 The Market gapped down rather moderately at the open and then traded sideways till the P.M. when buyers stepped up and helped the Market close little changed. At the close, the DJIA was down just 53 points, the S&P500 down 2 points, and the Nasdaq100 finished flat. While it was another day of volatility, we remained in a range that we seem to be establishing. All three indices bounced off their 20D-SMA’s intra-day. Perhaps that’s where we will find short term support.  All three indices remain above their 50D-EMA’s.  The indices remain above some important support levels and their 200D-EMA. The DJIA dropped just below its 50% retracement level of 10355. Seems to be hovering here last several sessions.  We remain near a congestion area and may become range bound short term. The Financials (XLF), traded slightly lower, closing at 14.59, down .04. Support remains 14.50, 14.40, 14.30, 14.15, and 14.00. Resistance now at 14.60, 14.75, 15.00 and 15.30. GOLD(GLD) fell below support  of 107.00 intra-day, but managed to recover and close up .95 to 108.31. Right at its 50D-SMA. Support remains near 107.00. It closed just above its 20 and 50D-EMA.  The VIX changed little to 20.10.


Trading Trend

Long term, after retracing over 50% of recent correction, the Market is having difficult time getting through a congestion area. Short term, bias had reversed to the upside, but we remain right near congestion area.  Near term, a little roller coaster action the last few sessions, but we are remaining within support and resistance areas. Possibly settling into a range.  Today’s futures(at 8:15am) are mostly flat versus fair value. Economic growth indicators and U.S. Treasury funding remain the key Market movers.


Major Economic Reports Today:

GDP-8:30am    Chicago PMI-9:45am    Mich. Sentiment-9:55am   Existing Home Sales-10:00am


MAJOR INDICES- Short term support and resistance levels.

DJIA-(close 10321)  SP500-(close 1102)   N100-(close 1812)


    S           R                  S         R                    S          R

10297    10355            1100   1108              1812     1820

10288    10500            1099   1115              1803     1830

10277    10540            1098   1120              1801     1840

10200    10614            1097   1130              1800     1845   

10150    10650            1089   1134              1798     1850

10000    10725            1080   1135              1783     1872  

  9941                          1070   1143              1775     1880                                                 

  9925                          1059                         1758                 

                                    1051                         1742                          


Options/Derivative Flows

In XHB (Homebuilders SPDR), we saw buyers of downside protective puts, specifically 15,000 March 15 strike puts.  Earlier in the week there were buyers of September 14 puts, delta neutral, so investors are likely protecting long equity positions against weakness, and/or anticipating a spike in volatility levels in the sector. In IWF (Russell 1000 Growth), we saw what looks like an overwriter (selling calls against an underlying long equity position).  The May 53 calls were sold in size, which are significantly out of the money, so we believe a holder of IWF is earning premium income against a long position in the ETF, and basically saying that the IWF will not run past $53 between now and May. 


Trade Ideas

VIX(Volatility Index) –Closed 20.10. Has bounced off the 20 area several times in recent months. Resistance on upside at 22.50 and 24.00. The VXX (iPath VIX short term future) closed at a new low on 2/19 at 27.05. It remains weak as we closed below at 26.74. 

S1F In the News:

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Disclosure: No positions