Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Wednesday, June 29, 2011

|Includes: SPDR Dow Jones Industrial Average ETF (DIA), QQQ, SOX, SPY, XLY, ZAGG

Based on the current stock market direction trend we are increasing the support/resistance levels on the DJIA (NYSEARCA:DIA) (12,258/12,356), S&P 500 (NYSEARCA:SPY) (1,306/1,316), and Nasdaq Composite (NASDAQ:QQQ) (2,735/2,746)...All 9 sectors finished higher...The consumer discretionary (NYSEARCA:XLY) sector up barely 0.5% was the only sector to move on heavy trade on above average volume...Focus list stock symbol ZAGG (only one to move on material volume) reversed course this afternoon keeping with the recent trend (down moves on higher volume) of our focus list stocks and finished down 3.6% after being higher as much as 8.3%...Technology is lagging today up 0.4% while the Semiconductor Index (SOX) is down slightly and S&P 500 up 0.8%...Stocks are off session highs mostly in the middle of their intra-day trading range...S&P 500 and Nasdaq Composite below next resistance levels at 1,305 and 2,735, respectively...Zagg Inc (NASDAQ:ZAGG) only focus list stock moving on heavy volume up 4.1%-most heavy moves recently by stocks on the focus list has been down on heavy volume...No major volume plays in the ETFs/sectors we follow...Very quickly in three days the Volatility Index (VIX) has gone from a level indicating fear has returned to the market somewhat back down to levels complacency is growing once again...S&P 500 above 1,305/1,306 resistance level next level to look for is 1,316/1,317-could find some resistance here...2,746 on Nasdaq...If the major indexes are on their way to testing the daily 50 day moving averages it will be interesting to see what happens on the weekly chart for the S&P 500...The 50 day daily and 21 day weekly moving averages for the S&P 500 are both 1,317...This would be the first test of resistance for the S&P 500 weekly 21 day moving average since it fell below it in late May...Since late August 2010 the weekly 21 day moving average has been a good support level for the S&P 500...If the S&P 500 moves up to the 1,317 this would be the first test to see if the 21 day weekly moving average turns into a resistance level.


No positions in securities mentioned.