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StreetOne Technical Analysis, LLC Market Summary-03/29/2010

|Includes: EWJ, EWW, GLD, QQQ, Financial Select Sector SPDR ETF (XLF), XLV
Another session with a good open, and then an event reversal mid-day to flatten the averages at the close. At the bell, the DJIA was up 9 points, the S&P500 up nearly 1, and the Nasdaq100 up 3 points. Closing near technical levels and on weak volume. After two positive days to start the week, a little bit of roller coaster action to close it out. For the week, the DJIA and Nasdaq100 were up 1%, with the S&P500 up 0.5%. As we move into the final days of the quarter, the DJIA is up 4%, the Nasdaq100 up 4.9%, and the S&P500 up 4.5%, year to date.  Since the run-up from early Feb., we have not had a meaningful consolidation in the major indices. The recent choppiness is more predictive of a corrective rollover then consolidation. Two indices that have been leading the recent rally, Russell 2000 and Dow Transports, have recently had a negative cross in their MACD. For the S&P500 and Nasdaq100, 1150 and 1920 respectively, are key support levels in keeping the short term move to the upside intact. The Financials (NYSEARCA:XLF), closed up .02 to 16.00. Support now at 16.00, 15.75, 15.40, and 15.30. Next resistance at 16.15, 16.30 and 16.50. GOLD(NYSEARCA:GLD) moved up 1.7% to close at 108.59, right near its 50D-EMA. It remains in recent trading range of 106.50 to 112. The VIX did reverse and close down 3.4% to 17.77.  

 

Trading Trend

Long term, technicals remain positive as we continue to trade near recent highs.  Short term, upside bias is still intact. Near term, recent choppiness and mid session reversals suggest some caution. Monitor support levels noted above(S&P500 and Nasdaq100) for near term direction. Today’s futures(at 8:15am) are up moderately versus fair value. Economic recovery confirmation(e.g.-employment) and interest rates have become the key Market movers.

 

Major Economic Reports Today:

Personal Income/Spending-8:30am      

 

MAJOR INDICES - Short term support and resistance levels

DJIA-(close 10850)

SP500-(close 1166)

N100-(close 1952)

10800

10888

1165

1170

1950

1963

10773

10979

1162

1175

1940

1975

10725

11000

1160

1186

1935

1988

10667

11125

1150

1200

1920

2000

10605

11254

1143

1225

1914

2025

10540

 

1135

 

1900

2050

10505

 

1130

 

1880

 

10500

 

1127

 

 

 

10355

 

 

 

 

 

 

 

Options/Derivative Flows-(From the desk of P.Weisbruch)

In EWW (iShares Mexico), investors bought near term speculative upside April 55 calls, which would only be a profitable trade if EWW rises about 6% between now and April expiration.

 

Trade Ideas

XLV(SPDR Health Care)- Closed 31.90. A buy above 32.00. Short term potential 34.00

EWJ-(Ishares MSCI-Japan)-Closed at 10.38. Remains a buy above 10.25. Breaks out to new high above 10.50.

QQQQ(Powershares-Nasdaq100)- Closed 48.00. Look for pullback to enter. Support at 47.75 is key. Similar trade QLD(2X leverage).

 S1F In the News: http://www.streetonefinancial.com/news.html

This communication is not intended to constitute any offer or solicitation to buy or sell securities. Street One Financial (S1F) works with Emerging Growth Equities, Ltd (EGRO), Broker/Dealer and member of SIPC, FINRA (www.egequities.com). For more information, please contact us at: 877-782-8353



Disclosure: No positions