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StreetOne Technical Analysis, LLC Market Summary-05/26/2010

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

 Another volatile session, with the Market gapping down at the open and trading down in the 3% range, before reversing and closing little changed.  At the close, the DJIA was down just 22 points, the S&P up .38 of a point, and the Nasdaq100 up just .4 of a point. A remarkable turnaround from early in the session, when the S&P500 and the DJIA were trading below their Feb. lows.  Breadth was still negative about 5 to 3 and volume was above average.  We closed above the Feb. closing lows of DJIA(9908) and  S&P500(1056).  We have now tested and traded below these lows twice intra day and have managed to bounce off. This remains critical support.  Both indices set up ‘Hammer’ candlesticks, which may signal a near term reversal.  The DJIA and S&P500 remain below their 200D-EMA’s(DJIA-10261, S&P500-1102), suggesting continued weakness. This remains as near term resistance. The Nasdaq100 closed just above its 200D-EMA(1807), which also may be signaling a reversal. Near term resistance for the Nasdaq100 remains at 1855(Fibonacci level).  The VIX, which was up in the morning, closed off 9.6% to 34.61.  

 

Trading Trend

Long term, the upside bias remains in jeopardy, as we continue to test the Feb. lows.  Short term, bias remains to the downside. Near term, volatility remains extremely high and choppiness should continue. One day reversals and swings are not out of the question, however bias remains to the downside. Today’s futures(at 8:15am) are higher versus fair value.  The European debt crisis remains at the top of the list of Market movers.

 

Major Economic Reports Today:

Durable orders-8:30am     New Home Sales-10:00am       Crude Inv.-10:30am

 

MAJOR INDICES Short term support and resistance level

DJIA

(close 10043)

SP500

(close 1073)

N100

(close 1815)

10000

10150

1070

1080

1807

1820

9943

10242

1057

1088

1800

1835

9925

10254

1056

1090

1781

1840

9900

10345

1050

1100

1775

1850

9850

10355

1043

1102

1765

1855

9725

10401

1036

 1106

1750

 1862

9712

10500

1025

 1117

1735

 1870

9650

10544

1020

 1120

 

 1880

 

10554

1016

 1125

 

 1893

 

 

Trade Ideas

GLD(SPDR Gold)-Closed 117.36. A buy after holding support at 115. Has crossed back above its 20D-EMA. Similar-IAU(iShares Gold Trust), SGOL(OTC:ETFS)

SHY(iShares Barclay 1-3 Treasury Bonds)–Closed-83.81.  Remains a buy above 83.60.

IEF(iShares Barclay 7-10 Treasury Bonds)-Closed-93.76.  Remains a buy above 91.00.  Both have recently moved above their 200D-SMA.

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Disclosure: No positions