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StreetOne Technical Analysis, LLC Market Summary-05/27/2010

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

Market Summary-05/27/2010

Choppiness continues with the Market up over 1.5% most of the session and then selling off in the last forty-five minutes to close down for the day.  At the close, the DJIA was down 0.6%(closing below 10000), the S&P500 off 0.5%, and the Nasdaq100 down 1%.  Breadth was positive 3 to 2 and volume was above average. Heavy volume in the last 45 min. sell off.  Another session where we trade in a 2-3% range, as the volatility remains extremely high.  The Dow Transports and the Russell 2000 were the only major indices which held their gains into the close. The S&P500 and the DJIA traded near their Feb. lows, but closed above. The Feb. closing lows of DJIA(9908) and  S&P500(1056) remain critical support.  The DJIA and S&P500 remain below their 200D-EMA’s(DJIA-10256, S&P500-1102), suggesting continued weakness. This remains as near term resistance. The Nasdaq100 closed back below its 200D-EMA(1807), retaining its downward bias. Near term resistance for the Nasdaq100 is now 1807 and 1855(Fibonacci level). The VIX, reversed at the close and finished up 1.1% to 35.02. Volatility remains extremely high.

 

 

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. Holding the Feb. lows is a positive and may set up as a near term base. 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:

Initial/Continuing Claims-8:30am     GDP-8:30am      

 

MAJOR INDICES Short term support and resistance level

DJIA

(close 9974)

SP500

(close 1067)

N100

(close 1796)

9925

10000

1056

1070

1781

1800

9908

10150

1050

1080

1775

1807

9900

10242

1049

1088

1765

1820

9859

10254

1043

1090

1760

1835

9850

10256

1036

1099

1750

1840

9725

10277

1025

 1100

1735

 1850

9712

10345

1020

 1102

 

 1855

9650

10401

1016

 1117

 

 1870

9500

10490

 

 1120

 

 

 

 

Trade Ideas

GLD(SPDR Gold)-Closed 118.47. A buy after holding support at 115. Has crossed back above its 20D-EMA. The GLD meets some resistance near 119. Similar-IAU(iShares Gold Trust), SGOL(OTC:ETFS)

SHY(iShares Barclay 1-3 Treasury Bonds)–Closed-83.74.  Remains a buy above 83.60.

IEF(iShares Barclay 7-10 Treasury Bonds)-Closed-93.57.  Remains a buy above 91.00.  Both have recently moved above their 200D-SMA.

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