The market rose today with the Nasdaq Composite leading the way with a 1.4% gain. Market breadth was generally positive and investor participation was stronger on the Nasdaq versus the NYSE. As a result, we are raising the support/resistance levels on the DJIA (DIA), S&P 500 (SPY), and Nasdaq Composite (QQQQ) (see below). The S&P 500 closed today above both its 21-day and 50-day moving averages. Now both the DJIA and S&P 500 have regained both these key moving averages. The Nasdaq Composite closed above its 21-day moving average but remains below its 50-day moving average. The Volatility Index (VIX) continued its steep descend from a recent high of 31.28 by closing at 18 and now sits below its 21-day, 50-day, and 200-day moving averages. The market has quickly moved from the highest level of fear it has seen since August 2010 back down to the low levels of complacency it has seen since then. Overall, based on the current stock market direction aggressive investors can continue to accumulate shares in new positions slowly. If you need to own stocks, please see our watch list below. In our watch list today we removed the positions in Assured Guaranty Ltd. (symbol: AGO) that were added to our watch list on March 1, 2011 and March 14, 2011. We removed both these positions at today's intra-day price of $14.95. See our prior post for details. The March 1, 2011 position in AGO was added at $13.96 and returned 7.1% while on the watch list. The March 14, 2011 position in AGO was added at $13.90 and returned 7.6% while on the watch list. We have one remaining position in AGO left on the watch list.
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