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BTDStocks.com Tuesday, December 14, 2010 End-Of-Day Update

|Includes: APOL, CSCO, SPDR Dow Jones Industrial Average ETF (DIA), EUO, NUVA, PSQ, QQQ, SH, SPY, UUP
Stocks began the trading session today with small gains and similar to yesterday gave back the majority of the gains by the closing bell.  However, the action didn't give a clear indication that investors were selling shares heavily.  But the breadth of the market weakened from an advance/decline perspective coupled with the number of stocks making new lows increasing.  We are leaving the support levels the same on the S&P 500 (NYSEARCA:SPY) and Nasdaq Composite (QQQQ).  Because the DJIA (NYSEARCA:DIA) was able to outperform the other indexes with a 0.4% gain today and keeping with the trend we are raising its support to its prior resistance level of 11,444.  We wouldn't take this as an indication of strength since the DJIA is less broad than the S&P 500 and Nasdaq Composite.  As we noted in the recent past the DJIA has been trailing the other indexes so we label today's session as a catch-up session for the DJIA.  We are keeping the resistance level for the S&P 500 the same since it closed today right at the 1,242 resistance level.  Also, we are keeping the resistance level the same for the Nasdaq Composite at 2,638 (never even tested this level today).  We are raising the resistance level on the DJIA to basically where it closed today.  See below for major indexes support/resistance levels.  We continue to believe the prudent approach based on the current stock market direction is to remain cautious and sell into strength (protect profits, keep cash on the sidelines safe, and limit losses) .  The activity in the last two trading sessions indicates many stocks are consolidating right now.  If you need to own stocks and are more aggressive, please see our watch list below.      

SUMMARY

DJIA: Up 0.4% to 11,477

S&P 500: Up 0.1% to 1,242

Nasdaq Composite: Up 0.1% to 2,628

BREADTH FOR NYSE

Advancing Issues: 1,352

Declining Issues: 1,711

Advance/Decline Ratio: .8 to 1

New Highs: 172

New Lows: 102

High/Low Ratio: 2 to 1

SUPPORT/RESISTANCE LEVELS

DJIA: 11,444/11,479

S&P 500: 1,226/1,242

Nasdaq Composite: 2,580/2,638

SECTOR ANALYSIS

Health Care was the best performing sector up 1.0% while Financials was the worst performing sector down 0.9%.

Other Sectors:

Consumer Discretionary Flat

Consumer Staples Up 0.5%

Energy Down 0.5%

Industrials Up 0.5%

Materials Down 0.1%

Technology Up 0.2%

Utilities Up 0.3%

WATCH LIST SYMBOLS

(NASDAQ:APOL)-since 10/28/10
(NYSEARCA:SH)-since 11/12/10

(NASDAQ:NUVA)-since 11/12/10

(NASDAQ:CSCO)-since 12/2/10

(NYSEARCA:PSQ)-since 12/8/10

(NYSEARCA:UUP)-since 12/8/10

(NYSEARCA:EUO)-since 12/8/10

No positions in securities mentioned.

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