The major indexes finished mixed today with the DJIA (DIA) and S&P (SPY) down slightly and the Nasdaq Composite (QQQQ) up a small amount. Investor participation was extremely slow in fact the slowest session in 2011 so far. The Federal Reserve will be meeting this week to discuss the economy and the status on QE2 and interest rates. Investors might be in a wait-and-see mode until the FED releases its statement. Market breadth finished on the negative side. Based on today's action we are keeping the support levels the same on the DJIA and S&P 500 but lowering their resistance levels (see below). For the Nasdaq Composite we are keeping the support/resistance levels the same (see below). If the S&P 500 cannot break the 1,343 level then we might see a more severe correction then we have seen since the market began rallying in late August and since the market bottom in March 2009. The level on the Nasdaq Composite is 2,834. This could be a possible scenario with complacency and volatility at low levels not seen in many years. The slightest pickup in nervousness could create a selloff with investors already heavily invested in stocks. Caution is probably the best approach based on the current stock market direction until we see how the market reacts to the FED and the S&P 500 and Nasdaq Composite can break 1,343 and 2,834, respectively. If you need to own stocks, please see our watch list below. In our watch list today we closed the position in Cameco (symbol: CCJ) we added to the watch list on Tuesday, April 12, 2011 at today's market open price of $29.93. We added the position in CCJ at $27.65. While on the watch list CCJ returned 5.7% in 13 days. We have one position remaining in CCJ on the watch list.
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