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StreetOne Technical Analysis, LLC Market Summary-05/24/2010

|Includes: IEF, iShares 1-3 Year Treasury Bond ETF (SHY)

 The Market opened to the downside again, but quickly reversed and moved into positive territory. While there was some sell off in the afternoon, buying in the last half hour pushed the indices into decidedly positive gains. At the close, the DJIA and the Nasdaq100 were up 1.2%, and the S&P500 was up 1.5%. Breadth was positive, 3 to 1, and volume above average. For the week, the DJIA was down 4%, the S&P500 off 4.2%, and the Nasdaq100 losing 4.4%. The major indices have now corrected more then 10% since the April highs.  The DJIA and S&P500 bounced off their Feb. lows(9908 and 1056 respectively) intra day on Friday, and this may set up as temporary support. They remain below their 200D-EMA’s(DJIA-10263, S&P500-1102), suggesting continued weakness. This now sets up as near term resistance. The Nasdaq100 closed slightly above its 200D-EMA(1807) and comfortably above its Feb. closing low of 1732. Near term resistance for the Nasdaq100 becomes the Fibonacci retracement level(.618 from recent last leg high) of 1855.  The VIX lost 12.4% to 40.01. Volatility remains extremely high.

 

Trading Trend

Long term, the upside bias remains in jeopardy, as we test the Feb. lows. Short term, bias remains to the downside. Near term, we bounced off Feb. lows in an overly sold Market. Expect to test this level again before we can establish as a short term base.  Today’s futures(at 8:15am) are moderately lower versus fair value.  The European debt crisis remains at the top of the list of Market movers.

 

Major Economic Reports Today:

Existing Home Sales-10:00am

 

MAJOR INDICES Short term support and resistance level

DJIA

(close 10193)

SP500

(close 1087)

N100

(close 1822)

10150

10242

1080

1088

1820

1835

10119

10263

1077

1090

1807

1840

10000

10355

1070

1100

1800

1850

9925

10401

1056

1102

1781

1855

9900

10488

1050

1117

1775

1870

9850

10500

1036

 1120

1765

 1880

9725

10653

1025

 1125

1750

 1885

9712

 

1020

 1136

 

 1893

9650

 

 

 1143

 

 

 

 

Trade Ideas

SHY(iShares Barclay 1-3 Treasury Bonds)–Closed-83.83.  Remains a buy above 83.60.

IEF(iShares Barclay 7-10 Treasury Bonds)-Closed-93.44.  Remains a buy above 91.00.  Both have recently moved above their 200D-SMA.

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

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