Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors. Friday, February 25, 2011 End-of-Day Update

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

After some strong selling in the prior sessions stocks notched strong gains today. The S&P 500 (NYSEARCA:SPY) and Nasdaq Composite (QQQQ) were able to close above the resistance levels we recently outlined. Market breadth was good. However, diving under the surface indicated investor participation was not strong and investors might have been using strength to sell shares rather than accumulate them. Staying with the trend we are raising the support/resistance levels on the DJIA (NYSEARCA:DIA), S&P 500, and Nasdaq Composite (see below). Once again like yesterday's session the market used today to work of the fear levels the Monday/Tuesday sessions generated. The Volatility Index (VIX) ran up and tested its 200-day moving average but has since back off. We wouldn't be surprised to see it move down to the low 17 area to close the gap that was created during Tuesday's session. If this occurs this could indicate a confused market smacked in middle ground between fear and complacency. Stocks appear to be trying to establish a new base based on how the stock market direction is acting. As always read what the market is telling you and continue to protect profits and holding losses small.
No positions in securities mentioned.