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Industrials Tests Weekly Risky Level, Small Caps Above Pivot.

|Includes: DIA, GLD, QQQ, SPY, iShares 20+ Year Treasury Bond ETF (TLT), XLE

Markets in Review: Asian stocks were flat to higher on Thursday. The Nikkei 225 ended their session at 9,562 - up 0.01% on the day. The Hang Seng ended their session at 20,810 - up 0.79% on the day. European exchanges rebounded again on Wednesday, but are consolidating those gains as of 7:00 AM today. The FTSE 100 ended Wednesday at 5,719 - up 0.16% on the day. The DAX ended Wednesday at 6,705 - up 1.73% on the day. The CAC 40 ended Wednesday at 3,233 - up 2.02% on the day. The yield on the 10-Year US Treasury traded as high as 2.039 on Wednesday and is trading at today's pivot at 1.959 this morning. Initial Jobless Claims are projected to be 375,000 still above the 350,000 recessionary threshold. The key point in yesterday's Fed Statement is "the housing sector remains depressed". The Fed has yet to have a program to help housing, which is 17% of the US economy, and the key to job creation on Main Street USA. Gold is back between my semiannual pivots at $1635.8 and $1659.4. Crude oil is between annual and semiannual pivots at $103.58 and $104.84. The euro versus the dollar is trading around its weekly pivot at 1.3223. The Dow Industrial Average tested its weekly pivot at 13,104 with the Russell 2000 above its weekly pivot at 802.51.

Today's Four in Four Key Levels:
 

  1. Yields - The yield on the 10-Year US Treasury continues to trade between its 50-day simple moving average at 2.081 and my semiannual pivot at 1.903.
  2. Commodities - Gold continues to be influenced by my semiannual pivots at $1635.8 and $1659.4, which are below the 50-day / 20-day SMA "Death Cross" at $1680.4 and 1696.9. Crude oil remains influenced by quarterly, annual and semiannual pivots at $101.55, $103.58 and $104.84.
  3. Currencies - The euro versus the dollar remains above my semiannual value level at 1.2980 and tested this week's pivot at 1.3223 on Wednesday.
  4. Equities - The Dow Industrial Average tested my weekly risky level at 13,104 and the Russell 2000 closed above its weekly pivot at 802.51. Weekly risky levels remain at 1406.6 SPX, 3097 NASDAQ and 5326 Dow Transports.
  5. ValuEngine Valuations - Stocks are reasonably priced with 59.9% of all stocks undervalued with six undervalued sectors and ten overvalued sectors. Aerospace is 11.0% UV, Computers & Technology is 11.8% OV, Finance is 11.1% OV, Medical 14.4% OV, and Retail-Wholesale 12.9% OV.

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