brettstockblog's Blog : BTDStocks.com Monday, December 6, 2010 End-Of-Day Update

Stocks traded in a narrow range today with the DJIA (DIA) and S&P 500 (SPY) 82 and 2 points below their November highs, respectively at today's close. Only the Nasdaq Composite (QQQQ) is sitting above its November high (15 points above). Breadth indicators were mixed and trading activity among investors remains very light during the recent advance. We are keeping the support levels the same and slightly lowering the resistance levels on the DJIA and S&P 500 (see below). In addition, we are raising the resistance level on the Nasdaq Composite slightly as well (see below). We continue to believe the prudent approach is to keep your investment in stocks small and not be in a hurry to open new positions or add to open positions. This way you benefit if the market continues to move higher and don't get materially hurt if it decides to move down. If the rally does have more legs there will be plenty of time to get more aggressive. However, as we recently pointed out the bull market run that began in March 2009 might be in the late stages meaning it is less easy to find stocks with the potential for significant gains. We are considering adding some stocks to our watch list that will do well if the market hits a rough patch, so please follow us on Twitter to be alerted when we add them.

SUMMARY

DJIA: Down 0.2% to 11,362

S&P 500: Down 0.1% to 1,223

Nasdaq Composite: Up 0.1% to 2,595

BREADTH FOR NYSE

Advancing Issues: 1,501

Declining Issues: 1,509

Advance/Decline Ratio: 1 to 1

New Highs: 246

New Lows: 7

High/Low Ratio: 35 to 1

SUPPORT/RESISTANCE LEVELS

DJIA: 11,204/11,382

S&P 500: 1,200/1,225

Nasdaq Composite: 2,543/2,596

SECTOR ANALYSIS

Energy was the best performing sector up 0.3% while Health Care was the worst performing sector down 0.6%.

Other Sectors:

Consumer Discretionary Up 0.1%

Consumer Staples Down 0.2%

Financials Down 0.2%

Industrials Down 0.1%

Materials Up 0.2%

Technology Flat

Utilities Down 0.3%

WATCH LIST SYMBOLS

(APOL)-since 10/28/10

(SH)-since 11/12/10

(NUVA)-since 11/12/10

(DLR)-since 11/26/10

(CSCO)-since 12/2/10

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

No positions in securities mentioned.