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BTDStocks.com Thursday, March 17, 2011 End-of-Day Update

|Includes:AAPL, AGO, CSCO, SPDR Dow Jones Industrial Average ETF (DIA), EUO, FDO, NUAN, PSQ, QQQ, RWM, SH, SPY, UUP

After yesterday's meaningful strong selloff the major indexes were able to recover from a third to half of their losses.  Investor participation was not as strong as yesterday so the juror is still as to whether or not today is the start of a new uptrend in the market.  Market breadth was good in today's session.  Staying with the action of the market we raising the support levels on the DJIA (NYSEARCA:DIA), S&P 500 (NYSEARCA:SPY), and Nasdaq Composite (QQQQ) (see below).  We are keeping the resistance levels the same on the DJIA and S&P 500 (see below).  However, we are lowering the resistance level on the Nasdaq Composite (see below).  Investor fear subsided somewhat as the Volatility Index (VIX) declined 10.3% to 26.37.  Now that the VIX has taken out its 200-day moving average we wouldn't be surprised to see it back track a little and test its 200-day moving average to see if can turn it into support.  If this were to occur then the stock market direction might try for a sustained rally to end the first quarter.  Overall, aggressive investors can continue to nibble slowly into new stock positions while prudent investors may want to remain defensive before opening new positions in stocks and look to see if the rally today confirms a new uptrend for stocks.  If you need to own stocks, please see our watch list below.  As mentioned in our blog post last night we removed the positions in the ProShares Short S&P Fund (symbol: SH) and ProShares Short QQQ Fund (symbol: PSQ) added on January 27, 2011 at today's market open prices. The positions in SH and PSQ returned 1.3% and 3.5%, respectively while on the watch list. Also, we removed the position added in the Short Russell 2000 Fund (symbol: RWM) on February 1, 2011.  RWM lost 0.7% while on the watch list.  We still have one position active in the watch for SH, PSQ, and RWM.  Check back before tomorrow's market open as we may have some additions to the watch list.

No positions in securities mentioned.

Stocks: DIA, SPY, QQQ, SH, PSQ, RWM, UUP, EUO, AAPL, AGO, FDO, NUAN, CSCO