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StreetOne Technical Analysis, LLC Market Summary-08/20/2010

 by David Chojnacki

Weak economic reports sent the Market down right from the opening bell.  The indices continued to deteriorate till noon when they managed to find a bottom and trade sideways into the close.  At the close, the DJIA was down 1.3%, the S&P500 lost 1.6%, and the Nasdaq100 down 1.5%.  Breadth was negative, 3.7 to 1, with a pickup in volume on the downside.  The DJIA could not hold the 50D-SMA and closed below.  Near term support now becomes 10266 and 10150.  Resistance becomes 10355 and 10401.  The S&P500 found support near 1070 intra day and closed just above.  This is the second time in four sessions it found support here intra day. We are close to key support again near 1056.  Resistance now becomes 1083 and 1096.  The Nadaq100 met resistance near its 50D-SMA during the session and closed a good bit below.  There is support near 1800 and 1781 but then weak below this level to 1732.  Resistance on the upside is now 1830 and 1850 area.  The DJIA and S&P500 bounced off the same area intra day as three sessions ago(10216 and 1070) and perhaps this is a sign of temporary bottom.  The VIX spiked up 7.3% to 26.39, and is now well above its 200D-SMA(23.38), and closed at its highest level in a month and a half.          

 

Trading Trend

Long term, bias remains to the downside, as the indices continue below some key longer term indicators.  Short term downside bias continues, but we remain within a wide range.  Near term, re-established move to the downside after brief bounce.  Nearing critical support levels again; a break below and we could test the July lows again. The European debt crisis and U.S. economic recovery confirmation are the top Market movers.

 

 

Major Economic Reports Today:

None scheduled

 

 

MAJOR INDICES Short term support and resistance level

DJIA

(close 10271

SP500

(close 1075

N100

(close 1823

10270

10302

1071

1083

1808

1825

10266

10355

1070

1089

1800

1830

10216

10366

1056

1093

1781

1835

10150

10381

1044

1096

1775

1847

10000

10401

1035

1098

1750

1850

9925

10450

1025

 1100

1732

 1855

9908

10500

1022

 1116

 

 1856

9850

10554

1016

 1117

 

 1857

 

 

1010

 1120

 

 1860

 

 

 

Trade Ideas

 

None today.

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

 

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