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BTDStocks.com Tuesday, January 25, 2011 End-Of-Day Update

|Includes: SPDR Dow Jones Industrial Average ETF (DIA), EUO, FDO, PSQ, QQQ, RWM, SH, SPY, UUP

Stocks appeared to be headed for a material down day but were able to regain their footing in uneven trade to finish mostly flat in the session.  Investor participation was strong and market breadth was ok.  U.S. investors have a speech from the President tonight and some statements from the Federal Reserve tomorrow to digest before making their next moves.  We are raising the support level on the DJIA (NYSEARCA:DIA) and lowering its resistance level (see below).  For the S&P 500 (NYSEARCA:SPY) and Nasdaq Composite (QQQQ) we are increasing their support levels and keeping their resistance levels the same (see below). For the second session in a row the Volatility Index (VIX) has been unable to close above its 50-day moving average.  Until the VIX can recapture this level investor fear will remain contained without a meaningful pullback for stocks.  Based on the stock market direction opening new positions in stocks continues to be risky. The prudent approach as we have been saying is to sell into strength/protect profits and close any positions that develop a material loss. If you need to own stocks please see our open watch list symbols below.

No positions in securities mentioned.