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Thursday, July 7, 2011


The action today has increased the support/resistance levels on the S&P 500 (NYSEARCA:SPY) (1,345/1,357)/Nasdaq Composite (NASDAQ:QQQ) (2,872/2,874) but has the levels the same on the DJIA (NYSEARCA:DIA) (12,605/12,760)...Each of the three indexes was up at least 0.7%...A few interesting things to note underneath the hood of the stock market direction from a sector perspective today-defensive sector Utilities traded the most volume above average out of any of the sectors and the best gains were by the Financials (NYSEARCA:XLF) up 1.6% but its volume came in the most below average...9 out of 10 stocks in the focus list gained an average of 1.2% a little better than the 1.1% gain for the S&P 500 today...Volume was 22% above average for the stocks in the focus list led by Zaag Inc. (NASDAQ:ZAGG) and Veeco Instrument Inc. (NASDAQ:VECO) as these two stocks gained an average of 1.9% on volume 171% above average...In particular ZAAG looked to put in a bullish reversal today and closed at $12.83 slightly below its 21 day moving average at $12.90...Oil (NYSEARCA:USO) finished up about 2.2% and regained its 200 day moving average on volume moderately below average...Gold (NYSEARCA:GLD) was up slightly on volume way below average...Silver (NYSEARCA:SLV) was 1.2% higher on very quiet volume...On days when stocks finish strong the US Dollar (UUP) usually has a weak day-today was not the case as UUP was only down 0.2% on light volume and finished right at its 50 day moving average...Some money came out of bonds today and moved into stocks as TLT declined 0.3% on moderately lower volume...US Dollar (symbol: UUP) is performing rather well considering the move in stocks today hanging around its 21 day and 50 day moving averages area...UUP did create a small gap up in yesterday's session down to $21.31...If the market was to close here the Nasdaq Composite is at a new high on a closing basis...Keep your eye on the Semiconductor Index (SOX) here as it is getting close to testing its 50 day moving average...All of the major indices are now well above their moving averages (21, 50, 200) while the SOX is still below the 50 day moving average and since the market began rallying in mid-June the SOX has lagged the overall Nasdaq...Interesting right now how Utilities (NYSEARCA:XLU) considered a defensive area is the one sector trending on heavy volume...On a closing basis the Nasdaq is within 7 points (was within 4 earlier in the session) to its April high and the S&P 500 is further away from its April high within 14 points...Today's strong opening action with the market cheering the ADP jobs report created a gap up in the Nasdaq Composite between yesterday's high of 2,839 and today's low of 2,854-something to keep any eye because most times markets will come back and at least fill the gap in the near future.


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