David Chojnacki S1F Market Technician
After a flat open, the Market quickly moved to the downside, as investors digested the morning economic reports. Disappointing GDP and Jobless Claims had the S&P average moving to test the 1300 level once again. The S&P bounced off a level just below 1300, but could not get back in the black by the close. At the close, the DJIA and S&P gave up 0.2%, and the Nasdaq100 dropping 0.49%. Breadth ended fairly even, on a pickup in volume to above average. RSI's remain in the mid to upper 30's, with ROC(10's) rising. The Nasdaq100 and S&P had their ROC(10) move into positive territory. This is a result of the averages flattening out after a steep decline. The DJIA and S&P developed 'dojis' in the session, which may indicate a reversal is looming. The S&P found resistance just above its150D-SMA(1318) and once again closed below. We are also below the 150D-SMA(12578) in the DJIA, giving us indication that the downward slide is not over. Near and short term bias remains to the downside. The DJIA now finds support at 12300 and 12250(200D-SMA). Upside resistance is at 12500 and 12578. The S&P remained below its 150D-SMA(1318) and tested the 1300 level intra-day. Near term support lies at 1300, 1291-95, and 1284(200D-SMA). Resistance to the upside remains at 1318 and 1320-25 area. The Nasdaq100 managed to hold its 150D-SMA(2503) once again and its MACD began to move above its signal. If we get a follow through on the MACD today, it may signal improving short term technicals. Support is now at 2512 and 2502. Look for resistance at 2525 and 2550. The VIX settled at 24.06, a slight drop, after being as high as 25.46 during the session. Employment Report is key today. Futures are significantly lower versus fair value in the early going.
Major Economic Reports Today
Employment Report-8:30am PCE Prices-8:30am ISM Index-10:00am Construction Spending-10:00am Auto/Truck Sales-2:00pm
ALL PRICES NOTED IN THIS PUBLICATION ARE AS OF THE CLOSE ON TRADING PRIOR TO TODAY'S DATE, UNLESS OTHERWISE INDICATED
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