- Technical Market Commentary -

August 27, 2010 (FinancialWire) (Go to http://www.financialwire.net/?s=cmmtry for all recent commentaries.) — Today’s FirstAlert(tm) features the SPDRS S&P 500 Trust ETF (AMEX: SPY), Cisco Systems, Inc. (NASDAQ: CSCO), the PowerShares QQQ Trust ETF (NASDAQ: QQQQ), the Financial Select Sector SPDRS ETF (AMEX: XLF), Alarko Holding (OTC: AKOGF) and more…

“S&P 500 Will Test Correction Lows” (By Frank Kollar) — Both the S&P 500 Index (SPX) and its tracking ETF the S&P Deposit Receipts (AMEX: SPY) are headed for a test of their correction lows in coming days. On Thursday, August 26, SPX rallied at the open after new jobless claims came in at 473,000 (which was 27,000 less than the previous week’s 500,000).

The rally reached the prior support level at SPX 1060 and reversed, closing at 1047.22. The 1060 level was critical, marking the July correction lows as well as the 61.8% retracement support level for the entire July to August rally. The SPX 1060 level was broken in Tuesday’s August 24 gap down decline, and on Thursday it acted as resistance.

Thursday’s action almost guarantees a test of the early July lows at SPX 1010.91. For SPY it is at $101. Other bearish indicators are: the break of the rising wedge pattern three weeks ago; the SPX being below both its 200-day and 50-day moving averages; and the 50-day being below the 200-day average. Not to mention the growing unease among investors worried about a double-dip recession. The test of SPX 1010.91 is just ahead.

Note also that the Dow is now below 10,000 and the stock market is oversold. Today’s GDP second quarter revision report will without a doubt move the markets. Investors are expecting the worst so anything equal to or better than expected could result in a “sell the rumor, buy the news” rally. But even if the market rallies, we are back to business next week.

(Go to http://www.financialwire.net/2010/04/22/about-kollar/ for more about Mr. Kollar, and go to http://www.financialwire.net/?s=kllrfby+cmmtry for more of Kollar’s commentaries.)

**Today’s FirstAlert(tm) is brought to you by Marshal Shichtman & Associates, P.C. (see below).**

The FirstAlert(tm) “Money Index” is an indicator of the depth of market direction or indirection. While not always including the same stocks, the combined NYSE, AMEX and NASDAQ 24 to 25 most actives and combined NYSE, AMEX and NASDAQ greatest percentage losers and greatest percentage winners (weighted against pure monetary loss/gain) indicate the direction in which the mass of money is flowing, as well as the general focus of the market. Last session’s most actives showed 4 advancers versus 21 decliners. Volume leaders were led by the SPDRS S&P 500 Trust ETF (AMEX: SPY) (streaming research for SPY available at http://investrend.stocksmart.com/ri/toc?tid=34430), Citigroup, Inc. (NYSE: C) (streaming research for Citigroup available at http://investrend.stocksmart.com/ri/toc?tid=7921), Bank of America Corp. (NYSE: BAC) (streaming research for BAC available at http://investrend.stocksmart.com/ri/toc?tid=8456), the PowerShares QQQ Trust ETF (NASDAQ: QQQQ) (streaming research for QQQQ available at http://investrend.stocksmart.com/ri/toc?tid=1044870), the Financial Select Sector SPDRS ETF (AMEX: XLF) (streaming research for XLF available at http://investrend.stocksmart.com/ri/toc?tid=1026233), Intel Corp. (NASDAQ: INTC) (streaming research for INTC available at http://investrend.stocksmart.com/ri/toc?tid=3619), Cisco Systems, Inc. (NASDAQ: CSCO) (streaming research for CSCO available at http://investrend.stocksmart.com/ri/toc?tid=1723), Microsoft Corp. (NASDAQ: MSFT) (streaming research for MSFT available at http://investrend.stocksmart.com/ri/toc?tid=4652) and General Electric Co. (NYSE: GE) (streaming research for GE available at http://investrend.stocksmart.com/ri/toc?tid=8030).

The FirstAlert(tm) Economics Calendar lists GDP for Q2 (8:30 a.m. ET), U. of Michigan Consumer Confidence Index (9:55 a.m. ET).

The FirstAlert(tm) Earnings Calendar highlights Alarko Holding (AKOGF.PK) Q2 2010 Earnings Release.

FirstAlert(tm) Website of the Day: http://sunearth.gsfc.nasa.gov/eclipse/eclipse.html

Quote of the Day: “Every society honours its live conformists and its dead troublemakers.” — Mignon McLaughlin

Word of the Day: orthoepy \awr-THOH-uh-pee\, noun: 1. The study of correct pronunciation. 2. The study of the relationship between the pronunciation of words and their orthography.

In context: “Any one could then spell any word if he knew its pronunciation; the battle would shift to the field of orthoepy; and about such groups of words as ‘fog,’ ‘dog,’ ‘god,’ ‘grass,’ ‘gas,’ ‘path,’ ‘can't’ and the like, which would vary in spelling with different styles of utterance, would flame up internecine wars.

– Samuel McCoy, "Memory," The Reader, December, 1906.

(Orthoepy is essentially a modification of the Greek orthoepeia, literally "correctness of diction.")

Today is: Oil and Gas Industry Appreciation Day

Happy Birthday: Mother Teresa

Today in History: Mariner 2 was launched to Venus in 1962.

==========

**FirstAlert(tm) is underwritten by Investrend Communications. Today’s Investrend featured partner is Marshal Shichtman & Associates, P.C. –  Mr. Marshal Shichtman has served as council for Investrend Communications in various capacities since 2001. Mr. Shichtman is now collaborating with Investrend to provide a unique independent equity research product, which includes a specialized component particularly focused on assistance in best practices, filings, reporting and good governance. For a preferred introduction to Mr. Shichtman and/or Investrend’s specialized program, write to resources@investrend.com with “Shichtman Introduction” in the subject line.

==========

FirstAlert(tm), published exclusively by FinancialWire(tm), was created by Gayle Essary, founder of Investrend Communications, Inc., parent of Investrend Information. The opinions expressed in FirstAlert(tm) do not necessarily reflect the opinions of Investrend or of FinancialWire(tm).

FinancialWire(tm) is committed to serving the financial community through true journalism and providing relevant resources to investors. Standards-based, independent equity research on numerous public companies is available through the Investrend Research Syndicate (http://www.investrend.com/reports) written by FIRST Research Consortium (http://www.investrend.com/FIRST) member-providers. Real-time, streaming research for companies and funds mentioned in FinancialWire(tm) news is available via the Investrend Research Syndicate, courtesy of Stock Smart (at http://investrend.stocksmart.com/ss/html/hpcompany.html). Free annual reports and company filings for companies mentioned in the news are available through the Investrend Information Syndicate (at http://investrend.ar.wilink.com/?level=279). FinancialWire(tm), in cooperation with the Investrend Broadcast Syndicate, also provides complete, daily conference call and webcast schedules as a service to shareholders and investors via the FirstAlert(tm) Network’s “FirstAlert(tm) Daily” webpage (at http://www.financialwire.net/news-alerts/).

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) website at http://www.financialwire.net/disclosures.php and http://www.financialwire.net/2010/04/23/safe-harbor/). Additional resources for investors are also accessible via the FinancialWire(tm) website (at http://www.financialwire.net/2010/04/23/investor-resources/). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

Disclosure: Frank Kollar’s Fibtimer.com (http://www.fibtimer.com/) ETF Timing Strategy has a position in the S&P 500 SPDRS (AMEX: SPY).

Copyright © MMX, FinancialWire(tm); All rights reserved.

[ssryrsyr] [frlylrf] [frstlrtrlts] [frstlrtdlycmmt] [cmmtry] [mrktqr] [tchnlf] [anlytcl] [kllrfby]

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.