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StreetOne Technical Analysis, LLC Market Summary-08/31/2010

|Includes: Direxion Daily Financial Bear 3x Shares ETF (FAZ), SKF

 by David Chojnacki

The Market opened weak, tried to get even in the first hour, then sold off steadily through the remainder of the session.  At the close, the DJIA was off 1.3%, the S&P500 lost 1.4%, and the Nasdaq100 was down 1%. Breadth was negative 3 to 1, on very low volume.  The DJIA managed to hold 10000, but just barely.  Next important near term support is 9925. Upside resistance is pretty strong between 10355 and 10450.  The S&P500 dropped below 1056 again, maintaining the downside bias.  The 50D-EMA has been straddling the 200D-EMA, and just recently dropped below and is pulling away. The S&P has bounced off 1040 area, 4 times intra day so it is a key area to monitor.  Near term support is at 1040-1044, with upside resistance now 1056.  The Nadaq100 met resistance near 1800 during the session, then fell through support at 1775 to close just below.  Near term support now sets up as 1750 with upside resistance at 1775 and 1800.  Weakness continues in the equity markets with technical indicators continuing to strengthen that position.  Financials continue to weaken.  An abundance of news this week, low volume and high volatility, is indicating a choppy week ahead.  The VIX spiked 11.2% to 27.21.

 

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, we closed below 1056 again in the S&P500, keeping the bias to the downside.  As noted above, the ingredients for a volatile and choppy week are in place.  Considerable economic reports scheduled this week that can be Market movers.  Today’s futures(at 8:15am) are moderately lower versus fair value. The European debt crisis and U.S. economic recovery confirmation are the top Market movers.

 

 

Major Economic Reports Today:

Case-Shiller Index-9:00am     Chicago PMI-9:45am    Consumer Confidence-10:00am                            FOMC Minutes-2:00pm        

 

 

MAJOR INDICES Short term support and resistance level

DJIA

(close 10009

SP500

(close 1048

N100

(close 1772

10000

10150

1044

1056

1750

1775

9925

10154

1040

1065

1744

1807

9915

10247

1035

1070

1732

1823

9908

10258

1032

1076

1728

1826

9875

10266

1025

1083

1713

1830

9850

10269

1022

 1088

1700

 1835

9810

10309

1016

 1093

 

 1837

9725

10355

1010

 1096

 

 1844

9650

10366

1000

 1100

 

 1850

 

Trade Ideas

 

Day Trade

FAZ(Direxion Daily Financial Bear 3X)-17.05.  A buy over 16.50.  Resistance near 17.50.  Similar trade is SKF(ProShares Ultra short Financials).

 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

This publication is neither an offer to sell nor a solicitation to buy any securities mentioned herein. The information contained herein is based on data obtained from recognized sources that are believed to be reliable. Street One Financial LLC (S1F) and Emerging Growth Equities, Ltd. (EGRO) have not independently verified the facts, assumptions and estimates contained in this publication. Accordingly, no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions contained in this publication. The information contained in this publication is not and does not purport to be a complete analysis of every material fact respecting any company, industry, ETF or other security. Additional information concerning this publication may be available on request, if available. Many of the securities mentioned in this publication involve a higher degree of risk and more volatility than the securities of more established securities. For these and other reasons, the investments discussed in this publication may be unsuitable for investors depending on their specific investment objectives and financial position. Each investor should complete his or her own additional investigation and assessment prior to making investments in any securities. Transactions in securities mentioned herein may be effected only in those states where such securities are qualified for sale. Street One Technical Analysis LLC is an independently owned Company from Street One Financial LLC (S1F). S1F is an independent Company specializing in ETF’s, equities, and options utilizing the Broker/Dealer services and licenses of Emerging Growth Equities (EGRO), a fully registered Broker Dealer and member of SIPC/FINRA. All Partners of S1F are employees of EGRO. Through EGRO, S1F specializes in agency ETF/ETP, equities, and options trade execution. On the ETF/ETP end, S1F may work with the ETF issuers to understand their products more thoroughly and how they can complement an investor's portfolio.                                                                      © 2010 Emerging Growth Equities, Ltd



Disclosure: No positions