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BTDStocks.com Tuesday, February 1, 2011 End-Of-Day Update

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

Stocks marched higher today with both the DJIA (NYSEARCA:DIA) and S&P 500 (NYSEARCA:SPY) making new highs and closing above their respective emotional levels of 12,000 and 1,300.  The Nasdaq Composite (QQQQ) did not make a new high and is currently sitting below its resistance level of 2,755 and recent high of 2,766.  The fact the DJIA and S&P 500 are rallying to new highs and the Nasdaq Composite is lagging is something to watch closely going forward.  Tomorrow we get a clue on the January jobs report as ADP releases their figure before the government report due out on Friday.  Market participation and breadth was strong today.  As a result, we are raising the support level for the three major indexes (see below).  Also, we are raising the resistance levels on the DJIA and S&P 500 (see below).  The resistance level on the Nasdaq Composite remains the same.  We still feel buying at these lofty levels is risky based on how far the stock market direction has run up.  Instead most prudent investors would be keeping their powder dry by not opening new positions, protect their profits, and get rid of losses they cannot live with.  Today in our watch list we issued an alert that we added additional positions in symbols: (NYSEARCA:RWM), (NYSEARCA:UUP), and (NYSEARCA:EUO) (see below).

No positions in securities mentioned.