Marginal gains on low investor activity were the theme today. Market breadth was ok. The support/resistance levels are basically the same on the DJIA (DIA), S&P 500 (SPY), and Nasdaq Composite (QQQQ) (see below). However, we are raising the support on the Nasdaq Composite (see below). The recent trend has been when the market declines investors have been selling shares. When the market advances investors are not buying shares. The major indexes remain above their respective 50-day moving averages but below their 21-day moving averages. Currently, only the Nasdaq Composite is flirting with the potential to move below its 50-day moving average. Overall, defense is the smart move right now while protecting profits and holding losses small based on the stock market direction. If you need to own stocks, please see our watch list below. We added Family Dollar Stores (symbol: FDO) again to our watch list today intra-day at $50.28. FDO returned 24.3% the first time it was on our watch list. Please see our prior post for details.
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