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Tuesday, June 28, 2011

|Includes: SPDR Dow Jones Industrial Average ETF (DIA), MELI, QQQ, SPY, TLT, XLP, XLY

Even though the gains in the market are somewhat skeptical because of the lack of investor participation we are raising the support/resistance levels on the DJIA (NYSEARCA:DIA) (12,097/12,190), S&P 500 (NYSEARCA:SPY) (1,296/1,305), and Nasdaq Composite (NASDAQ:QQQ) (2,723/2,735)...It held the session but the volume leader in the focus list was symbol MELI down 3.3% in price with the major indexes up at least 1.2%...All nine sectors rose today and like we said earlier in terms of volume only the consumer discretionary (NYSEARCA:XLY) and consumer staples (NYSEARCA:XLP) rose on heavier volume and might indicate a confused market with two opposite end sectors being the volume leaders...Bonds (NYSEARCA:TLT) declined 0.8% on heavier than normal volume and fell below its 50-day moving average for the first time since April-TLT is not far off from reaching the 200 day moving average...Mercadolibre Inc (NASDAQ:MELI) is the only stock in the focus list trading on material volume but it is down 2.8%...S&P 500 is challenging the 1,296 level we mentioned for it to breakout from the trading range over the last two weeks...With the action today the Nasdaq Composite has broken out of its trading range down near its 200 day moving average...S&P 500 needs to get above 1,296 to join the Nasdaq...So far only the consumer discretionary sector is trading on heavier than average volume...Bonds are down on moderately heavier volume and they are currently testing their 50 day moving average...Two sectors in terms of heavy volume you seeing mone flow into today are consumer discretionary and consumer staples...These two sectors are at opposite ends of the spectrum...Could be indicating there are some people who believe in this weeks up market action and others who don't and might be moving money into more defensive areas...Next levels to challenge are 12,202 on the DJIA, 1,296 on the S&P 500, and 2,723 on the Nasdaq Composite...Major indices back above 21 day moving averages.


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