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StreetOne Technical Analysis, LLC Market Summary-10/05/2010

 by David Chojnacki

The Market opened weak, traded up briefly and then began to sell off making intra day lows near noon.  The Market then held on, to close off the lows of the session, but still down for the day.  At the close, the DJIA was off 0.7%, the S&P500 down 0.8%, and the Nasdaq100 losing 1%.  Breath was negative, about 2.7 to 1, on below average volume.  For the most part, the indices held important support levels and remained above the recent trading range.  Near term support for the DJIA continues at the 10708-10725 area.  Near term resistance remains at 10900.  The S&P closed below the 1143 level that it had straddled all last week, but held 1130 support level.  Next important support below that level is 1117-1120.  Near term resistance continues at 1150-1155, as we pulled back from near 1150 several times last week. The Nasdaq100 was the weakest of the three indices for the second straight session. It had been the leader and the strongest technically during September rally.  The recent pullback has removed some of the short term overbought condition.  Upside resistance is now 2000 and 2012, with support at 1975 and 1963. The VIX gained 4.5% to close at 23.53, just above the 200D-SMA(23.48).  

 

Trading Trend  

Long term, indicators becoming stronger, but bias still remains to the downside.  Short term, bias remains to the upside.  Near term, after a week of consolidation, the Market pulled back, but held recent breakout levels.  There was some testing of the breakout level intra day. In addition to the Unemployment Report on Friday, earnings reports will begin this week.  Today’s futures(at 8:15am) are moderately higher versus fair value. The European debt crisis and U.S. economic recovery confirmation are the top Market movers.

 

Major Economic Reports Today:

ISM Services-10:00am

 

MAJOR INDICES Short term support and resistance level

DJIA

(close 10751)

SP500

(close 1137)

N100

(close 1975)

10725

10761

1136

1138

1975

1987

10708

10800

1130

1143

1963

1988

10698

10900

1128

1150

1958

2000

10666

10981

1127

1155

1950

2012

10624

11000

1120

1162

1940

2025

10554

11125

1118

 1175

1931

 2038

10515

 

1117

 1188

1930

 2055

10500

 

1115

 1200

1915

 2057

10487

 

1112

 

 

 

 

 

 

Trade Ideas

None today.

 

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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