BTDStocks.com Thursday, April 14, 2011 End-of-Day Update

The major indexes spent most of the session today down but as the day went on stocks edged their way to basically a flat close. The DJIA (DIA) was up 0.1%, the S&P 500 (SPY) was flat, and the Nasdaq Composite (QQQQ) was down 0.1%. Even though stocks were able to erase the losses investor participation was somewhat mixed and market breadth was neutral. We are keeping the support/resistance levels the same for the DJIA, S&P 500, and Nasdaq Composite (see below). The DJIA tested its 21-day and 50-day moving averages intra-day and closed above both of them. The DJIA has yet to trade below its 21-day and 50-day moving averages on a closing basis. The S&P 500 also tested its 21-day and 50-day moving averages intra-day and closed at 1,315 right at its moving averages. 1,315 seems to be providing resistance for the S&P 500. The Nasdaq Composite as well tested its 21-day and 50-day moving averages intra-day and was able to regain both of them on a closing basis. A market that has a high level of complacency with low volatility can be vulnerable to negative economic and stock market related news. After the closing bell today Google (symbol: GOOG) beat its revenue forecast but missed on its earnings forecast. GOOG was down approximately 5% after hours and could have a negative impact on the Nasdaq Composite tomorrow if the stock suffers. Based on the current stock market direction the logical approach right now is to remain cautious when adding to stock positions. As always, protect your profits and keep losses small. If you need to own stocks, please see our watch list below. In our watch list today we added intra-day an additional position in Cisco Systems (symbol: CSCO) at $17.12. We now have two positions in our watch list for CSCO.
No positions in securities mentioned.