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

StreetOne Technical Analysis, LLC Market Summary-05/25/2010

|Includes: SPDR Gold Trust ETF (GLD), IAU, IEF, SGOL, SHY

 The Market traded mixed for most of the session with the DJIA and the S&P500 slightly in the red, while the Nasdaq100 stayed in the black. In the last half hour sellers stepped in and pushed all three indices decidedly to the downside.  At the close, the DJIA and the S&P500 were down 1.2%, with the Nasdaq100 off 0.4%. Breadth was negative 3 to 1, and volume below average.  Financials lead the indices to the downside with the XLF off 2.8% to 14.33, which is why the DJIA and S&P500 were hit harder to the downside.  We remain in correction mode and managed to hold above the Feb. lows of DJIA(9908) and  S&P500(1056). This remains critical support.  The DJIA and S&P500 remain below their 200D-EMA’s(DJIA-10261, S&P500-1102), suggesting continued weakness. This now sets up as near term resistance. The Nasdaq100 remained above its 200D-EMA(1807) and comfortably above its Feb. closing low of 1732. Near term resistance for the Nasdaq100 remains the Fibonacci retracement level(.618 from recent last leg high) of 1855.  Monday’s session did little to confirm the bounce to the upside last Friday.  The VIX lost 4.4% to 38.32. Volatility remains extremely high.

                                                                             

 

Trading Trend

Long term, the upside bias remains in jeopardy, as the Feb. lows are within reach. Short term, bias remains to the downside. Near term, the last session did little to build any confidence of Friday’s bounce. Expect choppiness to continue with the high volatility, and a retest of Feb. lows for the DJIA and S&P500.  Today’s futures(at 8:15am) are significantly lower versus fair value.  The European debt crisis remains at the top of the list of Market movers.

 

 

 

Major Economic Reports Today:

Case Shiller Index-9:00am     FHFA Housing Index-10:00am       Consumer Confidence-10:00am

 

MAJOR INDICES Short term support and resistance level

DJIA

(close 10066)

SP500

(close 1073)

N100

(close 1815)

10032

10150

1070

1080

1807

1820

10000

10242

1067

1088

1800

1835

9925

10261

1056

1090

1787

1840

9900

10355

1050

1100

1781

1850

9850

10401

1043

1102

1775

1855

9725

10412

1036

 1113

1765

 1870

9712

10500

1025

 1117

1750

 1872

9650

10554

1020

 1120

1735

 1880

 

 

1016

 1125

 

 1893

 

 

Trade Ideas

GLD(SPDR Gold)-Closed 116.84. A buy after holding support at 115. Similar-IAU(iShares Gold Trust), SGOL(OTC:ETFS).

SHY(iShares Barclay 1-3 Treasury Bonds)–Closed-83.82.  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

This communication is not intended to constitute any offer or solicitation to buy or sell securities. All trading and broker dealer services are through 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