brettstockblog's Blog : BTDStocks.com Monday, November 29, 2010 End-Of-Day Update

Some late day buying saved the stock market from having heavy declines today. The DJIA (DIA) tested and closed below its 50-day moving average while the broader S&P 500 (SPY) indexes tested but closed above its 50-day moving average. The Nasdaq Composite (QQQQ) which has held up the best during the current constructive correction did not test and remains comfortable above its 50-day moving average. The Volatility Index (VIX) rose as much as 7% rising above its 200-day moving average intraday but as stocks recovered most of their losses the VIX finished below its 200-day moving at the close and down 3.1%. The recent action in the VIX suggests investors have worked off a good amount of their complacency since the current stock market direction consolidation began. The prudent approach based on the recent action suggests it is ok to own stocks. As always the strategy should be to protect profits and avoid big losses. From our watch list UUP and EUO are up 3.5% and 10.3%, respectively since we added them to our watch list on October 20th. These are decent profits (if you followed us) in a short period of time. As a result, we are removing them from our watch list at tomorrow's market open price.

SUMMARY

DJIA: Down 0.4% to 11,052

S&P 500: Down 0.1% to 1,188

Nasdaq Composite: Down 0.4% to 2,525

BREADTH FOR NYSE

Advancing Issues: 1,275

Declining Issues: 1,747

Advance/Decline Ratio: .7 to 1

New Highs: 61

New Lows: 19

High/Low Ratio: 3 to 1

SUPPORT/RESISTANCE LEVELS

DJIA: 11,036/11,092

S&P 500: 1,185/1,199

Nasdaq Composite: 2,531/2,505

SECTOR ANALYSIS

Materials (XLB) was the best performing sectors up 0.9% while Technology (XLK) was the worst performing sector down 0.3%.

Other Sectors:

Consumer Discretionary (XLY) Down 0.2%

Consumer Staples (XLP) Down 0.2%

Energy (XLE) Up 0.7%

Financials (XLF) Up 0.8%

Health Care (XLV) Down 0.1%

Industrials (XLI) Flat

Utilities (XLU) Down 0.2%

WATCH LIST SYMBOLS

(UUP)-since 10/20/10; removing from watch list at market open price on Tuesday, November 30th)

(EUO)-since 10/20/10; removing from watch list at market open price on Tuesday, November 30th)

(APOL)-since 10/28/10

(SH)-since 11/12/10

(NUVA)-since 11/12/10

(DLR)-since 11/26/10

Please follow us on Twitter for updates to our watch list.

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