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Monday, February 28, 2011

 February 28, 2011 11:46 PM
 

For the second session in a row stocks advanced with the DJIA and S&P 500 gains broader than the Nasdaq Composite. In fact, the Nasdaq Composite reversed most of its early gains to finish basically flat. Investor participation has picked up over the last few sessions and market breadth was good today. However, defensive sectors such as health care and utilties lead the way today while technology lagged.  We are raising the support/resistance levels on the DJIA (see below). For the S&P 500 and Nasdaq Composite we are basically leaving their support/resistance levels the same (see below). Stocks appear to be trying to establish a new base based on how the stock market direction is acting. However, until the market shows additional strength defense is the best course. Continue to protect profits and holding losses small. If you need to own stocks, please see our watch list below.


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Rich
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