BTDStocks.com Monday, April 18, 2011 End-of-Day Update
Seeking Alpha Analyst Since 2010
The market indexes (DJIA, S&P 500, Nasdaq Composite) all dropped in today's session 1.1%. However, the market was able to cut their intra-day losses a significant amount. Some of the intra-day losses ranged between 1.9% and 2.1%. Market breadth was materially negative and investor participation confirmed the selling pressure today was significant. The S&P 500 (SPY) and Nasdaq Composite (QQQQ) finished below their 21-day and 50-day moving averages. The DJIA (DIA) is below its 21-day moving average but remains above its 50-day moving average. As a result, we are lowering the support/resistance levels on the DJIA, S&P 500, and Nasdaq Composite (see below). The Volatility Index (the VIX) dropped 10.7% indicating investors grew increasingly nervous. Current level of the VIX has room to increase from here meaning stocks might have further to fall. The prudent approach right now based on the current stock market direction is to remain cautious when adding stock positions.
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