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StreetOne Technical Analysis, LLC Market Summary-06/03/2010

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

 by David Chojnacki

The Market opened to the upside, continued to steadily move up through the session and got an extra buying spurt in the last hour.  At the close, the DJIA was up 2.2%, the S&P500 gained 2.5%, and the Nasdaq100 up 2.4%.  Breadth was positive, greater then 4 to 1, but volume dropped off.  The DJIA and the S&P500 closed just 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 remains at 1101 for the S&P500. For the DJIA resistance is at 10253. A break through these levels takes us to next important resistance of 1117-1120 for the S&P500 and 10355 for the DJIA. The Nasdaq100 is now comfortably above its 200D-EMA(1808) and closed above resistance of 1855 in the last session.  Next critical resistance is 1893.   We are eight sessions into a choppy Market and the DJIA and S&P500 have traded in a range bound by their Feb. lows and 200D-EMA.  We remain below 20D-EMA on all three indices, however, the Nasdaq100 closed just a point below.  Volatility suggests that recent action continues as we wait for clear direction. The VIX lost 15.1% to 30.16, a huge moderation, but still extremely high.  

 

Market Summary-06/03/2010

 

Trading Trend

Long term, the upside bias continues to remain intact, as we remain above the Feb. lows.  Short term, bias remains to the downside.  Near term, last session’s moderate gains were on low volume, and the S&P and DJIA could not close above 200D-EMA’s. Choppy action should continue.  Today’s and tomorrow’s(Employment) economic reports should be movers.  Today’s futures(at 8:15am) are slightly higher versus fair value.  The European debt crisis remains at the top of the list of Market movers.

 

Major Economic Reports Today:

ADP Employment-8:15am   Productivity-8:30am   Initial/Continuing Claims-8:30am 

Factory Orders-10:00am   ISM Services-10:00am     Crude Inv.-10:30am

 

 

MAJOR INDICES Short term support and resistance level

DJIA

(close 10249)

SP500

(close 1098)

N100

(close 1879)

10208

10253

1094

1100

1870

1880

10150

10355

1088

1101

1855

1893

10000

10383

1080

1113

1850

1900

9925

10401

1070

1117

1835

1911

9908

10500

1056

1120

1820

1931

9900

10554

1050

 1136

1809

 1940

9850

10580

1045

 1137

1800

 

9804

 

1043

 1143

1781

 

 

 

 

 1155

1770

 

 

 

 

Trade Ideas

GLD(SPDR Gold)-Closed 119.78.  Held above 119; expect to test recent highs(Close-121.40). Similar trades: IAU, SGOL, DGP, DGL, PHYS, UBG, UGL

 

XBI(SPDR S&P Biotech)-Closed-55.68. Closed above its 20 and 200D-EMA and MACD crossed to the upside. A buy if it holds above 55.50 level.  Near term support at 54.62 and resistance at 57.00. IBB(iShares Nasdaq Biotech) (similar); buy above 83.50.

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