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StreetOne Technical Analysis, LLC Market Summary-06/23/2010

|Includes: DGL, DGP, GLD, IAU, PHYS, QLD, PowerShares QQQ Trust ETF (QQQ), SGOL, UBG, UGL

by David Chojnacki

 The Market opened to the upside, but quickly began to lose ground as weak economic reports were digested. After trading relatively flat for a large part of the session, an accelerated sell off began near 2:00pm and continued into the close.  At the close, the DJIA was down 1.4%, the S&P500 off 1.6%, and the Nasdaq100 losing .8%.  All the action was on very weak volume, but breadth was decidedly negative 3.3 to 1 on the NYSE.   The DJIA closed just below its 20D-EMA(10296), but managed to hold the 200D-EMA(10247).  Look for the 200D-EMA to be near term support, with 10000 to be next important level of support.  Resistance on the upside is now 10430. The S&P500 closed slightly weaker, below all major moving averages and just under the 200D-EMA(1100).  There is some weak support near 1085, but next critical level is the Feb. low of 1056. Upside resistance remains at 1117-1120. The Nasdaq100 closed below the 50% retracement(1893) of Feb. to April leg, and just below its 50D-EMA(1890). 1855 remains important support to maintain short term upside bias. Upside resistance remains at 1920 and 1931.  A follow through on the previous session pullback, but with weak conviction.  The VIX spiked 8.7% to 27.05.  Volatility remains high.

 

Trading Trend

Long term, the upside bias remains intact.  Short term, last session put upside bias in jeopardy, and choppiness is looking like the likely ‘non-direction’. Near term, additional consolidation and choppiness likely as volatility remains high and volume very weak. Continues to be a trader’s market.  Some important economic reports on the calendar this week which may move the Market.  Today’s futures at(8:15am) are up versus fair value.  The European debt crisis remains at the top of the list of Market movers.

 

 

Major Economic Reports Today:

New Home Sales-10:00am    Crude Inv.-10:30am      FOMC Rate Decision-2:15pm



MAJOR INDICES Short term support and resistance level

DJIA

(close 10293)

SP500

(close 1095)

N100

(close 1880)

10247

10296

1085

1100

1879

1890

10150

10311

1070

1101

1873

1893

10000

10355

1056

1115

1870

1900

9925

10401

1050

1117

1855

1920

9908

10430

1046

1118

1835

1931

9900

10500

1044

 1120

1815

 1936

9850

10554

1035

 1131

 

 1940

 

10566

 

 1136

 

 

 

10605

 

 1143

 

 

 

Trade Ideas

 

GLD(SPDR Gold)-Closed 121.45, up .88%.  Action a little choppy lately, but still the trade for this type of Market. 20D-EMA(currently 119.87) has been fairly good support in current uptrend.  Expect to test 126-127.  Similar trades: IAU, SGOL, DGP, DGL, PHYS, UBG, UGL

 

Recent Calls-QQQQ-(Powershares QQQ)-Closed-46.24.   Closed below entry point of 46.75 for second straight session.  Recent weakness suggests technical strength no longer present to move through and hold 46.75.    Similar trade –QLD.

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Disclosure: No positions