Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors. Tuesday, November 16, 2010 End-Of-Day Update

|Includes: SPDR Dow Jones Industrial Average ETF (DIA), QQQ, SPY, VIXM
Stocks continued their downward spiral today as the major indexes closed below their 21-day moving averages. Unless the market stabilizes soon it looks like the next test will be the 50-day moving averages. The internals deteriorated more and the number of stocks making a new low expanded from 40 to 129. Volatility picked up significantly as the Volatility Index (VIX) rose 12% as investor nervousness continued to grow. As a result, we are lowering the support/resistance levels on the DJIA (NYSEARCA:DIA), S&P 500 (NYSEARCA:SPY), and Nasdaq Composite (QQQQ) (see below). The recent support levels on the DJIA and S&P 500 are now resistance and the resistance level on the Nasdaq Composite is even lower moving from 2,505 to 2,481. The stock market direction is clearly challenged right now. The prudent approach is to be mostly in cash until the market can establish a new base that is safer to buy stocks.  


DJIA: Down 1.6% to 11,024

S&P 500: Down 1.6% to 1,178

Nasdaq Composite: Down 1.8% to 2,470


Advancing Issues: 424

Declining Issues: 2,666

Advance/Decline Ratio: .2 to 1

New Highs: 18

New Lows: 129

High/Low Ratio: .1 to 1


DJIA: 10.979/11,144

S&P 500: 1,166/1,185

Nasdaq Composite: 2,437/2,481


Consumer Staples was the best performing sector down 1.1% while Materials was the worst performing sector down 2.2%.

Other Sectors:

Consumer Discretionary Down 1.4%

Energy Down 1.9%

Financials Down 1.7%

Health Care Down 1.5%

Industrials Down 1.6%

Technology Down 1.8%

Utilities Down 1.2%

Disclosure: No positions