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Friday, July 1, 2011

|Includes:SPDR Dow Jones Industrial Average ETF (DIA), GLD, QQQ, SOX, SPY, TIP, TLT, USO, UUP, ZAGG

The action today has increased the support/resistance levels on the DJIA (NYSEARCA:DIA) (12,570/12,584), S&P 500 (NYSEARCA:SPY) (1,336/1,343), and Nasdaq Composite (NASDAQ:QQQ) (2,815/2,823)...Each of these indices gained at least 1.4% today...The Semiconductor Index (SOX) did even better gaining 2.1% and regained its 200 day moving average and is approaching its 50 day moving average...The five day rally this week has quickly turned the market from a state of increased fear back down to a market of lesser volatility and higher complacency as the Volatility Index (VIX) dropped 25% this week with the major indexes up close to 6% each...The average gain of the stocks in our focus list was 2.8%...Focus list stock Zagg Inc (NASDAQ:ZAGG) continued its selloff on higher volume and lost another 4.1% today...ZAGG is approaching its 21 day moving average so let's see if it can find support there..Remember our focus list stocks are NOT recommendations but they act as a measure in helping follow the overall stock market direction...Every sector was higher today but one thing to note is the sector that traded the most above its average volume was defensive sector utilities...The US Dollar (NYSEARCA:UUP) was down 0.2% on a good amount below average volume...UUP will be interesting to watch here as it has put in a series of up and down channels since the beginning of June and held the low from yesterday in today's session...Oil (NYSEARCA:USO) was down 0.2% also on a good amount below average volume and remains below all its moving averages (21, 50, 200)...Gold (NYSEARCA:GLD) was down 0.7% on average volume but closed near its session high...GLD fell further below its 21 and 50 day moving averages and looks to have some support levels to challenge before maybe testing its 200 day moving average...For the second session in a row Bonds (NYSEARCA:TLT) tested its 200 day moving average intra-day and closed above it...So far Bonds are finding the 200 day moving average to be a support level...One thing to note and keep an eye on is the action in Inflation Protection Bonds (NYSEARCA:TIP)...Yesterday TIP was down only 0.2% but it traded 4.8 million shares when it has been trading an average volume of around 800K shares per day...Today TIP was down 0.6% but so far is finding support at its 50-day moving average after giving up support at the 21 day moving average today...For TIP the 21 day moving average has been a good support level for it since February...Between symbols TIP and GLD no one likes the inflation trade lately.


No positions in securities mentioned.