brettstockblog's Blog : BTDStocks.com Tuesday, December 21, 2010 End-Of-Day Update

Stocks advanced again today but without the backing of strong participation from investors. This has become the common theme of late which is a little scary to us. Even more common has been the euphoric bullishness among investors for stocks and jubilee predictions for 2011. Normally whenever you see this level of complacency among investors the market has its way of generating a catalyst that results in a pullback for stocks. We are not saying the market cannot advance in 2011 but the market is looking overbought and overdue for some type of correction. We believe there will be better buying opportunities then where prices sit right now. However, keeping with the trend and until the market shows us something different we are raising the resistance levels on the DJIA (DIA), S&P 500 (SPY), and Nasdaq Composite (QQQQ) to right where each of them closed today (see below). In addition, because of the markets current low float we are keeping the support levels the same (see below). Overall, we hold to our current belief the prudent approach is to continue selling into strength based on the current stock market direction. If you need to own stocks, please see our watch list.
SUMMARY

DJIA: Up 0.5% to 11,533

S&P 500: Up 0.6% to 1,255

Nasdaq Composite: Up 0.7% to 2,668

BREADTH FOR NYSE

Advancing Issues: 2,126

Declining Issues: 935

Advance/Decline Ratio: 2.3 to 1

New Highs: 243

New Lows: 25

High/Low Ratio: 10 to 1

SUPPORT/RESISTANCE LEVELS

DJIA: 11,444/11,533

S&P 500: 1,226/1,255

Nasdaq Composite: 2,580/2,668

SECTOR ANALYSIS

Financials was the best performing sector up 1.7% while Health Care was the worst performing sector down 0.3%.

Other Sectors:

Consumer Discretionary Up 0.4%

Consumer Staples Down 0.2%

Energy Up 1.0%

Industrials Up 0.8%

Materials Up 1.0%

Technology Up 0.6%

Utilities Flat

WATCH LIST SYMBOLS

(APOL)-since 10/28/10

(SH)-since 11/12/10

(NUVA)-since 11/12/10

(CSCO)-since 12/2/10

(PSQ)-since 12/8/10

(UUP)-since 12/8/10

(EUO)-since 12/8/10

(RWM)-since 12/16/10

No positions in securities mentioned.

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