The market continued with its winnings ways as stocks had small gains in Monday's session. Investor participation was quiet and market breadth was ok. The risk trade was on again with energy stocks leading the way and utility stocks lagging. Staying with the trend we are raising the support levels on the DJIA (DIA), S&P 500 (SPY), and Nasdaq Composite (QQQQ) (see below). We are also raising the resistance levels on the S&P 500 and Nasdaq Composite (see below). On the DJIA we are actually lowering the resistance level to 12,273. Volatility has disappeared from the market and the lack of headwinds is making it rather easy for many stocks to rise. Investor fear remains low and complacency high. We feel the longer this market continues to rise in this fashion the sharper the pullback will be and it will surprise everyone. The prudent approach remains not opening new positions in stocks, protect profits, and keep losses small based on the stock market direction
No positions in securities mentioned.
BTDStocks.com Monday, February 14, 2011 End-of-Day Update
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