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StreetOne Technical Analysis, LLC Market Summary-09/14/2010

by David Chojnacki

The Market gapped up at the open, pulled back some midday, then closed strong to post decent gains for the session.  At the close, the DJIA gained .78%, the S&P500 up 1.1%, and the Nasdaq100 gaining 1.5%. Breadth was nearly 4 to 1 positive, with volume increasing but still weak. The three major indices saw their 20D-EMA crossing above the 50D-EMA, as technicals continue to improve. The DJIA closed just below 10554, where it meets resistance and again at 10624.  Support is now at 10500 and 10452.  The S&P500 closed above its 200D-SMA and is now positive for the year.  It is now right in the middle of an area of heavier resistance 1116-1127.  If it breaks below 1116, it could test 1096 support again. On the upside, 1127-1130 provides formidable resistance.  The Nasdaq100 continues to show the best strength of the three indices as it moved through the heavy resistance area of 1900-1915. This now becomes support with resistance at 1930 and 1940.  Since noting a near term bottom developing on 9/1, the S&P and Nasdaq100 are up 6.8% and 8.7% respectively.  Additional resistance remains to break out of the recent trading range.  The VIX was down 3.5% to 21.21, its lowest levels since early May.  

 

Trading Trend

Long term, bias remains to the downside, as the indices continue below some key longer term indicators.  Short term bias is looking to reverse to the upside, however, still some resistance to break out of this range. Near term, good move through some key levels last session, after recent consolidation.  Expect to test 1127-1130 in S&P and 1930-1940 in the Nasdaq100.  A few key economic reports are scheduled this week which may move the Market.  Also, with options expiring this week, there may be some related activity.  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:

Retail Sales-8:30am    Business Inventories-10:00am          

 

 

 

MAJOR INDICES Short term support and resistance level

DJIA

(close 10544

SP500

(close 1121

N100

(close 1921

10500

10554

1120

1124

1918

1930

10452

10597

1117

1127

1915

1931

10445

10624

1116

1130

1900

1940

10401

10698

1100

1136

1893

1950

10370

10708

1096

1143

1891

1963

10366

10725

1093

 1150

1875

 1975

10355

10800

1090

 1155

1866

 

10330

10900

1087

 1175

1865

 

10327

 

1083

 

 

 

 

 

Trade Ideas

None today.

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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