BTDStocks.com Friday, May 6, 2011 End-of-Day Update
Stocks were off to the races at the opening bell today celebrating the jobs reports. However, by the time the stock market closed the major indexes gave back the majority of their gains. Investor participation this week was favoring profit taking even in today's session. Keeping with the trend we are raising the support levels and keeping the resistance levels the same on the DJIA (DIA), S&P 500 (SPY), and Nasdaq Composite (QQQQ) (see below). On the S&P 500 the higher support level is only one point higher to 1,336. The S&P 500 and Nasdaq Composite seem to be finding support at the 1,335 and 2,807, respective 21-day moving averages. The DJIA has yet to even re-test its 21-day moving average with the market showing weakness this week. The Semiconductor Index (SOX) too is finding support at its 21-day moving average as well as the 50-day moving average. Semis have a decent track record of being a reliable indicator for the future stock market direction. The market could potentially be forming a new base here to track up from. However, until we get confirmation of a new uptrend the best approach it to be cautious and limit your buying of stocks. Keep protecting your profits and limit your losses. If you need to own stocks, please see our watch list webpage. In addition, please visit our focus list webpage for specific buy, sell, hold rating on the stocks we follow.
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