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StreetOne Technical Analysis, LLC Market Summary-05/28/2010

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

 The Market opened to the upside, continued strong throughout the session and closed near the highs of the day. The first trading session in four without an intra day reversal.  At the close, the DJIA was up 2.8%, the S&P500 up 3.2%, and the Nasdaq100 gaining 3.6%. Breadth was positive 8 to 1, however, volume fell off. The DJIA and the S&P500 closed just at or above their 200D-EMA’s(10256 and 1102) respectively.  If we can get confirmation at these levels, we may get a short term bounce to the upside.  The Feb. closing lows of DJIA(9908) and  S&P500(1056) remain as critical support.  Near term resistance for the S&P500 now sets up as 1117-1120. For the DJIA resistance is near 10355. The Nasdaq100 moved through its 200D-EMA and near term resistance of 1855.  1807 becomes important support, while next critical resistance is 1893.  The charts of the major indices depict a textbook A-B-C correction pattern, beginning on April 26.  A hold of the 200D levels may be the base for another leg up.  The VIX, shed 15.5%, to close at 29.58. A big drop in volatility, but remains high.

 

 

Trading Trend

Long term, the upside bias continues to remain intact, as we have moved away from the Feb. lows.  Short term, bias remains to the downside.  Near term, volatility remains high and last session trying to reverse near and short term bias to the upside. Lower volume makes a reversal suspect. Need confirmation of hold of 200D-averages before stepping in long. Today’s futures(at 8:15am) are up slightly versus fair value.  The European debt crisis remains at the top of the list of Market movers.

 

 

Major Economic Reports Today:

Pers.Inc./Spending-8:30am   PCE Prices-Core-8:30am  Chicago PMI-9:45am  Mich. Sentiment-9:55am

 

 

 

MAJOR INDICES Short term support and resistance level

DJIA

(close 10258)

SP500

(close 1103)

N100

(close 1862)

10256

10274

1102

1117

1855

1870

10150

10355

1100

1120

1852

1889

10000

10401

1088

1122

1850

1893

9925

10468

1080

1136

1835

1900

9908

10500

1070

1143

1820

1915

9900

10554

1056

 1155

1807

   1931

9850

10637

1050

 1175

1800

   1940

9725

 

1049

 

1781

 

 

 

 

 

 

 

 

 

Trade Ideas

GLD(SPDR Gold)-Closed 118.69. A buy after holding support at 115. Has crossed back above its 20D-EMA. The GLD meeting some resistance near 119. Similar-IAU(iShares Gold Trust), SGOL(OTC:ETFS)

SHY(iShares Barclay 1-3 Treasury Bonds)–Closed-83.67.  Remains a buy above 83.60.

IEF(iShares Barclay 7-10 Treasury Bonds)-Closed-92.68.  Remains a buy above 91.00.  Both have recently moved above their 200D-SMA.

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