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BTDStocks.com Tuesday, March 22, 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

The major indexes experienced mild declines today. However, they were enough to adjust the support/resistance levels on the DJIA (NYSEARCA:DIA), S&P 500 (NYSEARCA:SPY), and Nasdaq Composite (QQQQ). Action indicated a lack of participation from investors and market breadth swayed toward the negative side. As mentioned above we are lowering the support/resistance levels on the S&P 500 and Nasdaq Composite (see below). For the DJIA we are keeping the support level the same but lowering its resistance level (see below). In last night’s update we discussed that the major indexes are at a reflection point possible facing resistance near some key levels. The DJIA closed below its 50-day moving average and remains below its 21-day moving average. The S&P 500 and Nasdaq Composite after rallying for three straight days have not generated enough power to even test their respective 21-day and 50-day moving averages. From here there could be multiple scenarios for the stock market direction. The scenario most people would like is for the market to push through their key resistance levels (21-day and 50-day moving averages) and move above their February highs. Scenario two being we successfully re-test the recent March lows and establish a new base to rally from. The third scenario is the darkest being the market falls below the March lows, establishes a new base and possible trades down and tests the 200-day moving averages. Currently, this is a hard market to judge so we side on the area of caution. Keep your buying small until the market offers a clearer picture. If you need to own stocks, please see our watch list below. We are trying to adjust our watch list for the three scenarios we mention/feel could occur above. In our watch list we added additional positions intra-day in the ProShares Short S&P Fund (symbol: SH) at $42.22, the ProShares Short QQQ Fund (symbol: PSQ) at $33.74, and Short Russell 2000 Fund (symbol: RWM) $30.71. We now have two positions in each of these ETFs in our watch list.  

No positions in securities mentioned.

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