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StreetOne Technical Analysis, LLC Market Summary-07/19/2010

|Includes: iPath S&P 500 VIX Short-Term Futures ETN (VXX)

 by David Chojnacki

The Market opened the session weak, and further deteriorated after the Mich. Sentiment report.  Selling continued into the close, with decliners outpacing gainers by almost a 4 to 1 margin on above average volume. At the close, the DJIA was down 2.5%, and the S&P500 and Nasdaq100 were off 2.8%. For the week the DJIA was down 1%, the S&P500 off 1.2%, and the Nasdaq100 off 0.6%.  All three indices dropped below the major moving averages and back below the critical 200 day. The DJIA and S&P500 have also fell back below their 50 week-EMA. Next major area of support for the DJIA is now 9908, with resistance at 10221.  The S&P500 dropped thru some near term support levels but closed above its Feb. low of 1056, which becomes near term support.  Upside resistance has now set up near 1094. The Nasdaq100 held the 1800 area closing just above. Near term support lies at 1800 and 1781. Near term resistance sets up as the 200D-EMA at 1814. We mentioned near term bias looking to reverse to the downside and now 1010 and 1016 level in the S&P500 need to be monitored closely for support or risk further erosion.  The VIX, spiked 4.4% to 26.25.   Volatility remains high.  

 

Trading Trend

Long term, we continue below key primary technical levels, keeping bias to the downside.  Short term, bias remains to the downside. Near term, an abrupt reversal to the downside may be continued.  Volatility and earning’s reports may make for a choppy week ahead.  Second quarter earnings continue this week, with only a small number of economic reports.  Today’s futures at(8:15am) are slightly higher versus fair value.  The European debt crisis and U.S. economic recovery confirmation are the top Market movers.  

 

Major Economic Reports Today:

Homebuilders Index-10:00am

 

 

MAJOR INDICES Short term support and resistance level

DJIA

(close 10097

SP500

(close 1064

N100

(close 1803

10000

10150

1056

1070

1800

1814

9925

10154

1050

1075

1781

1819

9908

10177

1044

1076

1775

1821

9810

10221

1035

1083

1750

1823

9725

10260

1025

1093

1732

1835

9686

10355

1016

 1094

1728

 1841

9650

10379

1010

 1100

 

 1849

 

10401

 

 1117

 

 1850

 

 

 

 

 

 1855

 

 

Trade Ideas

 

Recent Trades

VXX-(iPath VIX short term futures)-27.37.  A 6.4 % gain on Friday.  Profits should have been realized.   

 

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

 

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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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