Street One Fina...'s  Instablog

Market Summary

David Chojnacki S1F Market Technician

The Market was due for a bounce and we opened the week with a strong move to the upside. The action of the Nasdaq100 was encouraging, however, the volume lacked conviction. The indices did close at their highs of the session and possibly began to develop a floor. At the close, the DJIA was up 1%, the S&P gained 1.6%, and the Nasdaq100, the big winner, gaining 2.7%. Breadth was decidedly positive, 5 to 1, but the volume was weak. Low volume has been typical for Monday's the last several weeks. RSI's quickly moved into the mid 30's, and ROC(10's) advanced for all three major indices. The strength of the Nasdaq100 was encouraging as it moved back above its 150D-SMA, now at 2494. With the Nasdaq100 being the leader for the last several years, it is a key index to watch for a change in direction. Yesterday was an overdue bounce and we will see if the indices can build on it the remainder of the week. The DJIA fell just short of moving above its 150D-SMA, which sits at 12538. The DJIA now has support at 12500 and 12400. Resistance on the upside is 12538 and 12600. The S&P managed to close just above its 150D-SMA(1314). Resistance now becomes the important 1320-1325 area. Support is now at 1312 and 1300 near term. The Nasdaq100 had a good day and we will watch to see if this is any indication of possibly developing a bottom. Look for support now at the 2525 and 2500 level. On the upside, we now see resistance set up as 2550 and 2575. The VIX made a big move to the down side, losing 12.3% to 22.01. It remains in moderately volatile territory. Futures are slightly higher versus fair value in the early going.

Major Economic Reports Today

Existing Home Sales-10:00am

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) 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. 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

Market Summary

David Chojnacki S1F Market Technician

Some strength in the morning gradually eroded and the Market returned to its losing ways. By the close, the indices were near their lows of the session. At the close on Friday, the DJIA was off 0.59%, the S&P gave up 0.74%, and the Nasdaq100 losing 1.2%. Breadth was decidedly negative, 3 to 1, on above average volume. For the week, the S&P lost 4.2%, the DJIA gave up 3.5%, and the Nasdaq100 losing 5.2%. We hit new lows in this latest correction. RSI's have dropped into the low to mid 20's and we are clearly becoming over-sold. The Nasdaq100 is down 10.9% from its recent high, with the S&P pulling back 8.7%. There was little respect last week, from what should have been formidable support levels, as sellers continued to shed holdings. The major indices moved through key Fibonacci levels and below their 150D-SMA's. With the S&P unable to hold the 1320 (Fibonacci level), the 150D-SMA (1314), or the psychological 1300 area, momentum to the downside is increasing. The next important support levels for the S&P are the 1289(50% retracement of last leg) and its 200D-SMA at 1278. The Naqsdaq100 dropped key technical levels last week and a congestion area around 2450 looks to be the next critical support. The VIX closed at 25.10, back to higher volatility levels.

Long term, upside bias is in jeopardy, as momentum to the downside increases. The indices have also broken through the 150D-SMA, which is an indicator of longer term strength. Short term, the weakness continues and bias remains to the downside. Near term, the bias is to the downside, however, we are becoming very over-sold at these levels. We may see some kind of bounce, but there is no indication of developing any meaningful support at these levels. We have some housing reports this week and Durable Orders at the end of the week, which should help shed some light on the state of the economy. Europe will continue in the spotlight. Futures are higher this morning, indicating some strength at the open.

Major Economic Reports Today

No reports scheduled

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) 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. 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

Trading Trends

David Chojnacki S1F Market Technician

Market Summary

David Chojnacki S1F Market Technician

A flat opening did not last long, as the Market began its steady slide to the downside 15 minutes after the open. The S&P quickly reached the 1320 level where it was expected that formidable support would be present. Traders put up a valiant effort to hold that level as we traded near there for nearly an hour and a half. Sellers finally won out and pushed the averages through support and down for the remainder of the session, leaving the major averages to close at their lows of the session. At the close, the DJIA was off 1.2%, the S&P losing 1.5%, and the Nasdaq100 falling 2%. Breadth was decidedly negative, 6 to 1, on above average volume. Once again, the indices made new lows, with prices now back to January levels. Near and short term technicals are extremely weak as the correction continues. RSI's are in the mid-20's, signifying an over-sold condition. RSI's have not been this low since August '11, when the indices were making a bottom prior to the recent rally. The S&P was unable to hold important support today, (.61 Fibonacci level-1320), and gave little respect to its 150D-SMA which stood at 1313. It is now down 8.1% from its recent high. A 10% correction would put the S&P right at its 200D-SMA(1278). Look for support near 1300, 1289(50% retracement of last leg), and at 1278. The Nasdaq100 blew right through formidable chart support at 2550. Look for Fibonacci support at 2500 and at its 150D-SMA(2492). Upside resistance is now at 2550 and 2575. We are nearing longer term support levels. Last year the correction from April through September was nearly 20%. With options expiration, over-sold condition, and Facebook IPO, look for a possible bounce today. The VIX spiked 9.9% to 24.49 and volatility is back into the Market. Futures are higher versus fair value in the early going.

Major Economic Reports Today

No reports scheduled

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) 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. 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