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StreetOne Technical Analysis, LLC Market Summary-06/21/2010

|Includes: DGL, DGP, SPDR Gold Trust ETF (GLD), IAU, PHYS, QLD, QQQ, SGOL, UBG, UGL
by David Chojnacki

The Market opened to the upside, hit its highs of the session near late morning, then traded in a narrow range finishing with little change. At the close, the DJIA was up 16 points, the S&P500 up 1.4 points, and the Nasdaq100 up 2.8 points.  Breadth positive, 1.3 to 1, with options expiration probably accounting for the above average volume. The DJIA closed just above its 50D-EMA(10435) and gained 2.3% for the week. The S&P500 was also up 2.3% for the week and the Nasdaq100 gained 3.5%.  An interesting note is that the S&P500 10, 20 and 200D-EMA’s are all converging at 1100. The S&P500 remained just below its 50D-EMA which is at 1120.    The 1117 to 1120 area remains near term resistance for the S&P500, while next significant resistance for the DJIA is 10554. Next important area of resistance for the S&P500 is 1143 area.  The Nasdaq100 remains above 50% retracement(1893) of FEB. to April leg.  1900 remains near term support.  1893 and 1855 remain short term support. Upside resistance at 1920 and 1931.  Technicals continue to improve for all three major indices.  Gold(NYSEARCA:GLD) closed at a new high again(see trade ideas).  The VIX lost 4.3% to 23.95.  Volatility has diminished considerably in recent sessions.

 

 

Trading Trend

Long term, the upside bias remains intact. Short term, technicals indicating upside bias across all major indices.   Near term, bias is to the upside as technicals continue to strengthen.  Today futures at(8:15am) are up sharply versus fair value.  The European debt crisis remains at the top of the list of Market movers.

 

Major Economic Reports Today:

No major reports scheduled

 

MAJOR INDICES Short term support and resistance level

DJIA

(close 10450)

SP500

(close 1117)

N100

(close 1913)

10435

10500

1117

1120

1900

1920

10401

10520

1100

1127

1893

1928

10355

10554

1085

1136

1891

1931

10286

10605

1070

1143

1874

1940

10281

10708

1056

1150

1870

1950

10245

10725

1050

 1155

1855

 1975

10150

10800

1045

 1175

1835

 

10000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade Ideas

 

GLD(SPDR Gold)-Closed 122.83.  Closed at a new high for the second straight session, but near the lows of the session. Traded at 123.50 intra day.  20D-EMA(currently 119.81) has been fairly good support in current uptrend.  Expect to test 126-127.  Similar trades: IAU, SGOL, DGP, DGL, PHYS, UBG, UGL

 

QQQQ-(Powershares QQQ)-Closed-47.00. A buy above 46.75.  Some resistance near 47.50 and 48.25. Support near 46.75. Similar trade –QLD.

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Disclosure: No positions