Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Today's Techncial Outlook-5/16/2012

Market Summary

David Chojnacki S1F Market Technician

The indices flirted with both sides of the flat line for most of the morning. By mid- afternoon the averages moved to the downside and maintained that momentum into the close. The indices finished the session near their lows of the day. At the close, the DJIA was off 0.5%, the S&P lost 0.57%, and the Nasdaq100 giving up 0.37%. Breadth was negative, 2 to 1, on average volume. Near and short term technicals remain weak. RSI's are close to 30 and near over-sold territory. ROC(10's) continue to be negative and declining. Momentum to the downside has increased and the S&P reached 1328 at one point, which is a 6.4% correction from the early April high(1419). Short term bias remains to the downside and we look for the 1325 and 1320 levels to provide near term support for the S&P. Near term upside resistance is now at 1337 and 1340-43. As long as we remain below 1343, we can see near term pressure to the downside. The 150D-SMA for the S&P resides at 1311. The Nasdaq100 was not as weak as the other two major indices and it traded within a technical range for the session. In yesterday's 'Daily', we noted that support levels for the Nasdaq100 were 2588 and 2575. Yesterday's range for the Nasdaq100 was 2576 to 2589. Look for 2575 and 2550 to provide near term support. Upside resistance is now 2588 and 2600. The DJIA traded as low as 12608, close to the 12600 support level. Below here, we have support at the 150D-SMA which is at 12513. Resistance for the DJIA remains at 12715 and 12810. The VIX traded above 22 for a time, but it closed just below at 21.97. Volatility is creeping back into the Market and can be seen in the spreading of the Bollinger Bands. Futures are slightly higher versus fair value in the early going.

Major Economic Reports Today

Housing Starts/Building Permits-8:30am Industrial Prod./Capacity Util.-9:15am Crude Inv.-10:30am FOMC Minutes-2:00pm



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