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Street One Technical Analysis LLC Market Summary-06/04/2010

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

 by David Chojnacki

The Market opened to the upside, became mixed and lost ground mid-day, and then closed with small gains.  At the close, the DJIA was up 5 points, the S&P500 gained .4%, and the Nasdaq100 up .8%.  Breadth was positive, 4 to 3, and volume was weak. The DJIA and the S&P500 closed just above their 200D-EMA’s(10253 and 1101 respectively), but just below their 200D-SMA’s.  The Feb. closing lows of DJIA(9908) and  S&P500(1056) remain as critical support.  Near term resistance remains at the 200D levels till we move through convincingly. Next important resistance is 1117-1120 for the S&P500 and 10355 for the DJIA. The Nasdaq100 remains the stronger of the three indices with an RSI of 50, and closing just above resistance at 1893 and its 20D-EMA(1882). Next important resistance is 1931.  Light volume provided little conviction to yesterday’s action and the DJIA and S&P500 remain in a range, bound by their Feb. lows and 200D-EMA.  Volatility suggests that recent action continues as we wait for clear direction. The VIX lost 2.3% to 29.46, closing below 30 for the first time since May 11.

 

 

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, we closed right near 200D-levels(DJIA and S&P) last session with little conviction.  Choppy action continues and perhaps Employment Report today will be catalyst to firm a direction.  Today’s futures(at 8:15am) are lower versus fair value.  The European debt crisis remains at the top of the list of Market movers.

 

Major Economic Reports Today:

Employment Report-8:30

 

MAJOR INDICES Short term support and resistance level

DJIA

(close 10255)

SP500

(close 1102)

N100

(close 1895)

10253

10295

1101

1106

1893

1900

10223

10355

1100

1112

1882

1910

10150

10371

1096

1117

1880

1931

10000

10401

1088

1120

1870

1940

9925

10500

1080

1136

1862

1950

9908

10554

1070

 1143

1855

 

9900

10568

1056

 1155

1850

 

9850

 

1050

 

1835

 

9804

 

1047

 

1820

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade Ideas

GLD(SPDR Gold)-Closed 117.96.  Broke below 119 support, but held 20D-EMA(117.80).   Need to watch for support at 117.25, to continue as a buy.  Similar trades: IAU, SGOL, DGP, DGL, PHYS, UBG, UGL

XBI(SPDR S&P Biotech)-Closed-56.23. Remains a buy above 55.50 level.  Near term support at 54.62 and resistance at 57.00. IBB(iShares Nasdaq Biotech)  (similar); closed 83.47. A buy above 83.50.

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


This communication is not intended to constitute any offer or solicitation to buy or sell securities. All trading and broker dealer services are through Emerging Growth Equities, Ltd (EGRO), Broker/Dealer and member of SIPC, FINRA (www.egequities.com). For more information, please contact us at: 877-782-8353

 


This communication is not intended to constitute any offer or solicitation to buy or sell securities. All trading and broker dealer services are through Emerging Growth Equities, Ltd (EGRO), Broker/Dealer and member of SIPC, FINRA (
www.egequities.com
This communication is not intended to constitute any offer or solicitation to buy or sell securities. All trading and broker dealer services are through Emerging Growth Equities, Ltd (EGRO), Broker/Dealer and member of SIPC, FINRA (www.egequities.com



Disclosure: No positions