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The Weekly Charts Are Negative With SPX Below 1363.2.

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

Markets in Review: Asian stocks mixed this morning. The Nikkei 225 ended their session at 8,974 - down 0.23% on the day. The Hang Seng ended their session at 19,735 - down 1.15% on the day. European exchanges opened lower this morning after ending Friday with mixed sessions. The FTSE 100 ended last week at 5,576 - up 0.57% on the day. The DAX ended last week at 6,580 - up 0.95% on the day. The CAC 40 ended last week at 3,130 - flat on the day. The yield on the 10-Year US Treasury is at a year to date low at 1.777 after testing my semiannual pivot at 1.903 last week. Gold traded to a new YTD low at $1559.5 the Troy ounce this morning. Crude oil also traded to a new YTD low at $93.65 this morning below its 200-day simple moving average at $96.26. The euro versus the dollar is trending below my semiannual pivot at 1.2980.

Today's Four in Four Key Levels:
 

  1. Yields - The yield on the 10-Year US Treasury is between my semiannual pivot at 1.903, and monthly and weekly risky levels at 1.734 and 1.726.
  2. Commodities - For Gold my monthly value level is $1525.8 the Troy ounce with my annual pivot at $1575.8 and weekly and semiannual risky levels at $1612.6, $1635.8 and $1659.4. For Crude oil my semiannual value level is $79.83 with a weekly pivot at $95.76, and the 200-day SMA at $96.26 and quarterly risky levels at $101.55.
  3. Currencies - The euro versus the dollar shows a monthly value level at 1.2257 with my semiannual pivot at 1.2980 and weekly risky level at 1.3085.
  4. Equities - All major averages ended last week with negative weekly chart profiles. The S&P 500 ended the week below my annual pivot at 1363.2. The next downside warning comes with weekly closes below quarterly pivots / value levels at 12,794 Dow Industrials, 1337.7 S&P 500 and 2911 NASDAQ. The downside is to my annual value levels at 12,312 Dow Industrials and 2698 NASDAQ. This week's pivots are; 12,798 Dow Industrials, 1358.4 S&P 500, 2977 NASDAQ, 5085 Dow Transports and 786.76 Russell 2000. My prediction remains that Dow Transports and Russell 2000 will not return to their lag 2011 all time highs at 5627.85 set on July 7, 2011 and 868.57 set on May 2, 2011 in 2012.
  5. ValuEngine Valuations - Stocks remain cheap fundamentally with 67.2% of all stocks undervalued, but keep in mind that on October 4th 93.5% were undervalued. Five sectors are undervalued with eleven overvalued. Autos-Tires-Trucks - 17.4% UV and Basic Materials - 14.5% UV.

VE Morning Briefing - If you want expanded analysis of the US Capital Markets go to this link and sign up: http://www.valuengine.com/nl/mainnl?nl=D