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StreetOne Technical Analysis, LLC Market Summary-06/02/2010

|Includes: DGL, DGP, SPDR Gold Trust ETF (GLD), IAU, IEF, PHYS, SGOL, SHY, UBG, UGL

by David Chojnacki

The Market opened the shortened week slightly to the downside, then traded even or just above even, until a last hour sell off.  At the close, the DJIA was down 1.1%, the S&P500 off 1.7%, and the Nasdaq100 down .9%. Breadth was negative nearly 3 to 1, and volume below average again.  The DJIA and the S&P500 technicals remain weak as they remain below their 200D-EMA’s(10253 and 1101 respectively).  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 1101. For the DJIA resistance is at 10253. The Nasdaq100 held above its 200D-EMA(1808) and finished below near term resistance of 1855.  1808 remains as important support, while next critical resistance is 1893.   ROC’s(10) and  ADX’s(14) continue to show good momentum to the downside, however, we have now had seven sessions of volatile choppy range bound action. Technicals suggest that break from range is biased to the downside. The VIX was up again, this time 10.8% to 35.54.  Volatility remains extremely high.

 

Trading Trend

Long term, the upside bias continues to remain intact, but in jeopardy, as we remain above the Feb. lows.  Short term, bias remains to the downside.  Near term, last session last hour sell off not a good sign.  Volatility remains extremely high and trading is choppy in a narrow range. Weak technicals suggest direction is downward, when we break out of range.  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:

Pending Home Sales-10:00am   Crude Inv.-10:30am     Auto/Truck Sales-2:00pm 

 

 

 

MAJOR INDICES Short term support and resistance level

DJIA

(close 10024)

SP500

(close 1070)

N100

(close 1835)

10000

10150

1070

1080

1835

1849

9925

10208

1056

1088

1820

1850

9908

10253

1050

1093

1808

1855

9900

10355

1045

1100

1800

1870

9850

10397

1043

1101

1781

1880

9803

10401

1036

 1115

1767

 1893

9725

10500

1025

 1117

1765

 1900

9712

10554

1020

 1138

1750

 1912

9650

 

 

 1141

 

 1931

 

 

 

Trade Ideas

GLD(SPDR Gold)-Closed 119.91.  Moved through resistance at 119, expect to test recent highs(Close-121.40). Similar trades: IAU, SGOL, DGP, DGL, PHYS, UBG, UGL

 

Recent Calls- Technicals weakening. Change to Hold.

SHY(iShares Barclay 1-3 Treasury Bonds)–Closed-83.77. 

IEF(iShares Barclay 7-10 Treasury Bonds)-Closed-92.96. 

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

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Disclosure: No positions