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BTDStocks.com Monday, October 18, 2010 End-Of-Day Update

|Includes: SPDR Dow Jones Industrial Average ETF (DIA), QQQ, SOX, SPY

Stocks spend most of today's session positive with decent breadth but the volume was hard to judge coming off options expiration on Friday.  The current stock market direction uptrend continues to steadily move up with only minor intraday pullbacks.  Based on the action today we are increasing the resistance levels on the major indexes (see below).  In addition, we are raising the support level on the DJIA (NYSEARCA:DIA) but keeping the levels the same on the S&P 500 (NYSEARCA:SPY) and Nasdaq Composite (QQQQ) (see below). However, the Semiconductor Index (SOX) declined 0.7%.  The weakness in the SOX is worth noting because they are generally a reliable leading indicator because many things we use in our everyday lives require the use of semis.  Overall, the best approach is to continue not opening new positions since the market rally is well extended with many stocks beyond proper buy points and continue to take profits/limit losses.   

SUMMARY

DJIA: Up 0.7% to 11,144

S&P 500: Up 0.7% to 1,185

Nasdaq Composite: Up 0.5% to 2,481

BREADTH FOR NYSE

Advancing Issues: 2,037

Declining Issues: 1,010

Advance/Decline Ratio: 2 to 1

New Highs: 156 

New Lows: 4

High/Low Ratio: 39 to 1

SUPPORT/RESISTANCE LEVELS

DJIA: 11.063/11,145

S&P 500: 1,174/1,187

Nasdaq Composite: 2,435/2,481

www.btdstocks.com



Disclosure: No positions