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StreetOne Technical Analysis, LLC Market Summary-07/01/2010

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

by David Chojnacki

The Market seemed to be taking a breather after the prior session’s big losses, however, selling intensified in the last hour to push the indices down near 1%.  At the close, the DJIA and S&P500 were down near 1%, with the Nasdaq100 off 1.4%.  Breadth was negative, 1.7 to 1, with volume lower then prior session, but near average.  From the April highs, the DJIA is now down 12.7%, and the S&P500 and Nasdaq100 are off 15.3%. The DJIA closed below the June low of 9810, and not much technical support till 9425 area. Resistance on the upside 9810 and 9908. The RSI is becoming close to oversold, short term.  The S&P500 closed just below a primary support level of 1035, and 1016-1010 looks like next area of important support. Near term resistance becomes 1035, with next important level 1044.  The Nasdaq100, while closing lower did hold the Feb. low of 1732, which remains near term support. Next critical support between 1700-1668. Near term resistance now at 1750, with 1781 next critical area. The VIX rose again by 1.2% to 34.54.  Volatility remains extremely high.

 

 

Trading Trend

Long term, the upside bias is breaking down; technicals are confirming reversal.  Short term, bias remains to the downside.  Near term, technical weakness continues to increase. Further weakness expected, but we are getting close to being short term oversold, so a brief bounce would not be a surprise. Economic reports today and Employment Report tomorrow will impact near term trade.  Today’s futures at(8:15am) are slightly lower versus fair value.  The European debt crisis and U.S. economic recovery confirmation are the top Market movers.  

 

Major Economic Reports Today:

Initial/Continuing Claims-8:30am      Construction Spending-10:00am     ISM Index-10:00am                          

Pending Home Sales-10:00am     Auto/Truck Sales-2:00pm

 

 

MAJOR INDICES Short term support and resistance level

DJIA

(close 9774)

SP500

(close 1030)

N100

(close 1739)

9729

9810

1025

1031

1732

1746

9725

9850

1016

1035

1713

1750

9650

9900

1010

1044

1700

1775

9500

9908

1000

1050

1684

1781

9456

9925

974

1056

1668

1800

9425

10000

946

 1070

1641

 1816

9350

10096

 

 1071

 

 1823

9280

10150

 

 1083

 

 

 

10177

 

 

 

 

 

 

Trade Ideas

GLD(SPDR Gold)-Closed 121.68, up .41.  20D-EMA(currently 120.70) remains as fairly good support in current uptrend.  Expect to test 126-127.  Similar trades: IAU, SGOL, DGP, DGL, PHYS, UBG, UGL

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

 

DISCLAIMER LANGUAGE

ALL PRICES NOTED IN THIS PUBLICATION ARE AS OF THE CLOSE ON TRADING PRIOR TO TODAY’S DATE, UNLESS OTHERWISE INDICATED

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