S&P 500 Composite (SPX, 1,178.59) stabilized and consolidated losses with a Doji Candlestick and a relatively small-range “Inside Day”, that is, a lower high and higher low. This signals hesitation, a loss of downside momentum, and a possible upside reversal for the short term. SPX recently fell 3.87% over 6 trading days, which qualifies as a typical moderate price pullback. There have been 6 price down waves of 3.87% or greater over the past year alone. Overbought/oversold oscillators, such as RSI(14), fully corrected their overbought condition by dropping down to the neutral zone. Minor price pullbacks ought to remain limited in this phase of the stock market. Longer term, SPX rose above 2-year highs on 11/5/10, again reconfirming a bullish major trend.

The S&P MidCap 400/Large Cap Relative Strength Ratio (MDY/SPY) rose above 15-year highs and remains bullish.

Consumer Discretionary stock sector Relative Strength Ratio (XLY/SPY) rose above 12-year highs and remains bullish. XLY has been at the top of my sector rankings for more than a year and has outperformed substantially.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Spotlight on event stocks: Here is a stock screen I designed to pick out potential event stocks, both Bullish and Bearish. Sometimes, stocks with large changes in price and volume are revealed to be deal stocks, sooner or later, or are the subject of some other extraordinary events, positive or negative.

Bullish Stocks: Rising Price and Rising Volume
Ranked by Price Change * Volume Change
% Price Change, Symbol, Name
0.84% , DSG , Growth Small Cap DJ, DSG
3.45% , DISCA , Discovery Communications
3.40% , TGT , TARGET
4.90% , BHH , Internet B2B H, BHH
4.24% , KSS , KOHLS
1.36% , ITF , Japan LargeCap Blend TOPIX 150, ITF
0.77% , PZJ , SmallCap PS Zacks, PZJ
2.51% , DLTR , Dollar Tree Stores Inc
3.78% , LAMR , Lamar Advertising Company
2.88% , ROST , Ross Stores Inc
3.45% , QCOM , QUALCOMM
2.90% , RL , Polo Ralph Lauren
0.58% , ADRU , Europe 100 BLDRS, ADRU
0.61% , BSX , BOSTON SCIENT
2.82% , SLE , SARA LEE
5.49% , DDS , DILLARD STK A
0.92% , ETR , ENTERGY
0.95% , EPU , Peru MSCI iS, EPU
0.35% , PXN , Nanotech Lux, PXN
1.51% , RDC , ROWAN COMPANIES
1.58% , IIH , Internet Infrastructure H, IIH
0.72% , JKG , MidCap Blend Core iS M, JKG
0.29% , VOX , Telecom Services VIPERs, VOX
1.40% , FII , FED INVESTORS STK B
0.49% , ELG , Growth Large Cap, ELG
1.21% , EWK , Belgium Index, EWK
0.16% , EWI , Italy Index, EWI
0.94% , SEE , SEALED AIR
2.51% , LTD , LIMITED BRANDS
1.62% , PETM , PETsMART Inc
0.06% , PTV , PACTIV
3.30% , COH , COACH
1.38% , TIN , TEMPLE INLAND
0.57% , IGV , Software, IGV
0.44% , VDE , Energy VIPERs, VDE
1.99% , SNV , SYNOVUS
2.28% , WAT , WATERS
0.78% , PWER , POWER ONE
0.44% , VWO , Emerging VIPERs, VWO
0.17% , MTK , Technology MS sT, MTK

Bearish Stocks: Falling Price and Rising Volume
Ranked by Price Change * Volume Change
% Price Change, Symbol, Name
-2.74% , FEU , Value LargeCap Euro STOXX 50 DJ, FEU
-6.53% , NTAP , NETWK APPLIANCE
-0.75% , MYY , Short 100% MidCap 400, MYY
-5.29% , HGSI , Human Genome Sciences Inc
-3.06% , ATI , ALLEGHENY TECH
-3.76% , KEY , KEYCORP
-2.03% , USO , Oil, Crude, U.S. Oil Fund, USO
-0.30% , TTH , Telecom H, TTH
-1.32% , GIS , GENERAL MILLS
-1.77% , NVLS , NOVELLUS SYS
-0.90% , EMC , EMC
-1.99% , HPQ , HEWLETT PACKARD
-0.45% , JNS , JANUS CAPITAL
-0.07% , PWT , Growth SmallCap Dynamic PS, PWT
-2.60% , PBI , PITNEY BOWES
-1.49% , NCR , NCR
-1.03% , QLGC , QLOGIC
-2.18% , PHM , PULTE HOMES
-0.17% , PWV , Value LargeCap Dynamic PS, PWV
-2.37% , WYNN , Wynn Resorts L
-0.64% , PEG , PUBL SVC ENTER
-0.23% , RZV , Value SmallCap S&P 600, RZV
-1.10% , PTEN , Patterson-UTI Energy Inc
-0.72% , GCI , GANNETT
-1.20% , CNP , CENTERPNT ENERGY
-0.85% , ISIL , INTERSIL CORP
-0.61% , TLAB , TELLABS
-0.96% , PGR , PROGRESSIVE OHIO
-0.35% , NSC , NORFOLK SOUTHERN
-0.20% , APOL , APOLLO GROUP
-0.16% , IVE , Value S&P 500 B, IVE
-0.81% , XL , XL CAPITAL STK A
-0.78% , CTAS , CINTAS
-0.61% , AEP , AM ELEC POWER
-0.37% , DLX , DELUXE
-0.19% , LMT , LOCKHEED MARTIN
-0.13% , ELV , Value Large Cap DJ, ELV
-0.15% , TDC , Teradata Corporation, TDC
-0.41% , SRCL , Stericycle, SRCL
-0.17% , MHS , MEDCO HEALTH

9 major U.S. stock sectors ranked in order of long-term relative strength:

Consumer Discretionary (XLY) Bullish, Over Weight. The Relative Strength Ratio (XLY/SPY) rose above 12-year highs on 11/17/10 and remains bullish. XLY has been at the top of my sector rankings for more than a year and has outperformed substantially. Absolute price rose above 3-year highs on 11/5/10 and remains bullish. Support 33.32, 33.11, 32.66, 31.70, 29.80, 28.64, 28.21, and 26.62. Resistance 38.25 and 39.09.

Energy (XLE) Bullish, Over Weight. The Relative Strength Ratio (XLE/SPY) rose above 10-month highs on 11/11/10 and gave a new bullish signal: the 50-day SMA crossed above the 200-day SMA. Absolute price rose above 2-year highs on 11/11/10 and remains bullish, with the rising 50-day SMA above the rising 200-day SMA. Support 60.21, 57.70, 55.68, 53.22, 50.33, 48.56, 46.16, and 43.66. Resistance 63.98, 69.95 and 78.10.

Industrial (XLI) Neutral, Market Weight. The Relative Strength Ratio (XLI/SPY) fell below 10-week lows on 11/11/10 and remains neutral. Absolute price rose above 2-year highs on 11/5/10 and remains bullish. Support 31.58, 30.79, 30.51, 30.32, 29.77, and 27.67. Resistance 33.53, 35.00, and 36.16.

Technology (XLK) Neutral, Market Weight. The Relative Strength Ratio (XLK/SPY) fell below 4-week lows on 11/16/10 and turned neutral. Absolute price of XLK rose above 2-year highs on 11/4/10 and remains bullish. Support 23.64, 23.56, 22.68, 22.53, 21.60, 20.01, and 19.51. Resistance 25.28 and 25.69.

Materials (XLB) Neutral, Market Weight. The Relative Strength Ratio (XLB/SPY) fell below 2-week lows on 11/16/10 and turned neutral. Absolute price rose above rose above 2-year highs on 11/5/10 and remains bullish. Support 33.70, 32.36, 29.88, 29.43, and 27.67. Resistance 36.71, 37.56, and 39.00.

Consumer Staples (XLP) Bearish, Under Weight. The Relative Strength Ratio (XLP/SPY) fell below 5-month lows on 11/10/10 and remains bearish. Absolute price rose above 2-year highs on 11/4/10 and remains bullish. Support 28.28, 28.04, 27.76, 27.63, 27.46, 26.34, 25.30, and 24.95. Resistance 29.27, 29.29 and 30.29.

Health Care (XLV) Bearish, Under Weight. The Relative Strength Ratio (XLV/SPY) fell below 6-month lows on 11/10/10 and remains bearish, as it has been most of the time since peaking on 2/23/09. Absolute price of XLV rose above 6-month highs on 11/4/10 and is now bullish. Support 30.11, 29.87, 28.00, 27.49. Resistance 32.05, 32.18, 32.42, 32.69, 33.16, 33.37 and 33.74.

Utilities (XLU) Bearish, Under Weight. The Relative Strength Ratio (XLU/SPY) fell below 5-month lows on 11/8/10. Absolute price of XLU peaked on 10/20/10 and appears neutral. Support 30.76, 30.15, 29.66, 27.91, 27.44, and 25.76. Resistance 32.11 and 32.40.

Financial (XLF) Bearish, Under Weight. The Relative Strength Ratio (XLF/SPY) remains bearish, below falling 50-day and 200-day SMAs. Absolute price of XLF rose above 5-month highs on 11/5/10 and remains neutral, with the 50-day SMA below the 200-day SMA. Support 14.25, 13.29, and 13.08. Resistance 15.68, 16.13, 16.90, 17.12, 17.16, and 17.87.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Emerging Markets Stocks ETF (EEM) Relative Strength Ratio (EEM/SPY) fell below 8-week lows on 11/16/10 and remains neutral.

Foreign Stocks ETF (EFA) Relative Strength Ratio (EFA/SPY) fell below 9-week lows on 11/16/10 and remains neutral.

NASDAQ Composite/S&P 500 Relative Strength Ratio fell below 3-week lows on 11/16/10, confirming a minor price pullback for the short term. The ratio rose above 9-year highs on 11/2/10 and remains bullish for the long term. Absolute price rose above 2-year highs on 11/8/10 and remains bullish.

The Largest Cap S&P 100/S&P 500 Relative Strength Ratio (OEX/SPX) fell below 28-year lows on 11/11/10. The ratio has been trending lower since 8/3/10. Longer term, big caps have been relatively out of favor for more than 10 years, since 3/29/2000.

The Small Cap Russell 2000 Index/Large Cap Relative Strength Ratio (IWM/SPY) rose above 5-month highs on 11/10/10 and remains bullish.

The S&P MidCap 400/Large Cap Relative Strength Ratio (MDY/SPY) rose above 15-year highs on 11/17/10 and remains bullish. Absolute price rose above 2-year highs on 11/5/10 and remains bullish.

Crude Oil nearest futures contract price fell below the lows of the previous 3 weeks on 11/17/10, again confirming a minor price pullback for the short term. Longer term, Oil rose above 2-year highs on 11/11/10, again reconfirming a bullish major trend. Support 79.84, 78.86, 72.63, 70.76, 70.35, 69.51, 68.59, 67.15, 65.05, and 64.24. Resistance 88.63, 90.51, 98.65, and 102.84.

Gold nearest futures contract price stabilized and consolidated with a relatively small range “Inside Day”, that is, a lower high and higher low. Longer term, Gold rose above previous all-time highs on 11/9/10, again confirming the bullish major trend. Support 1329.0, 1315.6, 1297.0, 1274.8, 1270.5, 1232.4, 1210.9, 1191.5, and 1155.6. Resistance: 1424.3.

Gold Mining Stocks ETF (GDX) Relative Strength Ratio (relative to the Gold bullion ETF, GDX/GLD) rose above 11-month highs on 11/12/10 and remains bullish.

Silver nearest futures contract price fell below the lows of the previous 6 trading days on 11/16/10, confirming a minor price pullback for the short term. Silver rose above previous 30-year highs on 11/9/10, confirming a bullish major trend.

Silver/Gold Ratio rose further above 2-year highs on 11/5/10, again confirming a bullish trend. Silver has outperformed Gold substantially since 8/20/10.

Copper nearest futures contract price fell below the lows of the previous 7 weeks on 11/17/10 before reversing to close slightly higher. A further oversold bounce seems probable. Longer term, Copper rose above previous 2-year highs on 11/11/10, again confirming the bullish major trend. Strength in Copper suggests confidence about prospects for the world economy, while weakness in Copper suggests doubts. Support 3.6065, 3.3930, 3.1775, 2.9285, 2.8555, 2.8445, and 2.72. Resistance 3.90, 4.0825, and 4.27.

U.S. Treasury Bond nearest futures contract price fell below the lows of the previous 4 months on 11/15/10, confirming the preexisting bearish trend for the intermediate-term trend. Support 125.15, 125.07, 124.19, 123.03, 121.28, 119.26, 118.24, 118.12, 115.15, 114.06. 113.04, and 112.15. Resistance 129.27, 133.00, 135.12, 135.19, 136.31, 137.31, and 142.31.

Junk/Investment-Grade Corporate Bonds Relative Strength Ratio (JNK/LQD) rose above 6-month highs on 11/15/10. Absolute fell below 6-week lows on 11/16/10 and is now neutral.

U.S. Treasury Inflation Protected / U.S. Treasury 7-10 Year Relative Strength Ratio (TIP/IEF) sagged lower since 10/26/10, which implies that fixed-income investors actually have been choosing less inflation protection, contrary to those voices warning of inflation recently.

The U.S. dollar nearest futures contract price eased lower in profit taking. USD rose above 6-week highs on 11/16/10, again confirming the preexisting short-term bounce. Longer term, USD fell below 11-month lows on 11/3/10, thereby confirming a bearish long-term price trend. Support 75.235, 74.27, and 70.80. Resistance 80.505, 82.335, 83.315, 83.64, 83.96, 85.36, 86.71, 88.80, 89.22, 89.71, and 92.53.

Advisory Service Sentiment: There were 56.2% Bulls versus 20.2% Bears as of 11/17/10, according to the weekly Investors Intelligence survey of stock market newsletter advisors. The Bull/Bear ratio stands at an above average 2.78, up from an extreme low of 0.78 on 9/1/10. That 0.78 was the lowest level of bullish sentiment in 17 months, since 3/25/09. Previously, the ratio had fallen substantially from an extreme peak at 3.36 set on 1/13/10, which was the highest bullish sentiment in 6 years. The 20-year range is 0.41 to 3.74, the median is 1.53, and the mean is 1.60.

VIX Fear Index rose to 23 on 11/16/10, which was above the highs of the previous 6 weeks. That jump signaled rising fear of a downside price correction. Previously, VIX collapsed to the 18 area in October and November, down from 48 last May. That drop indicated increasing bullish confidence and decreasing concern and hesitancy by options players to chase obvious price strength. VIX is a market estimate of expected constant 30-day volatility, calculated by weighting S&P 500 Index CBOE option bid/ask quotes spanning a wide range of strike prices for the two nearest expiration dates.

The Dow Theory reconfirmed a Primary Tide Bull Market as of 11/3/10, when both the Dow-Jones Industrial Average and the Dow-Jones Transportation Average closed above their closing price highs of the previous 25 months. The Dow Theory originally signaled the current Primary Tide Bull Market on 7/23/09, when both the Dow-Jones Industrial Average and the Dow-Jones Transportation Average closed above their closing price highs of the previous 6 months. Many other analysts were fooled into calling “Bear Market” by the big downside Secondary Reaction in May and June 2010, but my interpretation has been steadily Bullish on the Primary Trend.

S&P 500 Composite (SPX, 1,178.59) stabilized and consolidated losses with a Doji and a relatively small-range “Inside Day”, that is, a lower high and higher low. This signals hesitation, a loss of downside momentum, and a possible upside reversal for the short term. SPX recently fell 3.87% over 6 trading days, which qualifies as a typical moderate price pullback. There have been 6 price down waves of 3.87% or greater over the past year alone. Overbought/oversold oscillators, such as RSI(14), fully corrected their overbought condition by dropping down to the neutral zone. Minor price pullbacks ought to remain limited in this phase of the stock market. Longer term, SPX rose above 2-year highs on 11/5/10, again reconfirming a bullish major trend.

S&P 500 Cash Index Potential Resistance
1576.09, high of 10/11/2007
1552.76, high of 10/31/2007
1523.57, high of 12/11/2007
1498.85, high of 12/26/2007
1440.24, high of 5/19/2008
1406.32, high of 5/29/2008
1381.50, Fibonacci 78.6% of 2007-2009 range
1366.59, high of 6/17/2008
1335.63, high of 6/25/2008
1313.15, high of 8/11/2008
1274.42, high of 9/8/2008
1255.09, high of 9/12/2008
1238.81, Fibonacci 78.6% of 1,576.09 high
1228.74, Fibonacci 61.8% of 2007-2009 range
1227.08, high of 11/5/10

S&P 500 Cash Index Potential Support
1173.00, low of 11/16/10
1171.70, low of 10/27/10
1166.74, low of 10/20/10
1159.71, low of 10/19/10
1,151.41, low of 10/7/10
1,131.87, low of 10/4/10
1122.79, low of 9/23/2010
1114.63, low of 9/15/2010
1110.88, low of 9/10/2010
1091.15, low of 9/7/2010
1039.70, low of 8/27/10
1039.31, Fibonacci 23.6% of June-Aug. 2010 range
1010.91, low of 7/1/2010
1008.55, Fibonacci 38.2% of 2009-2010 range
991.97, low of 9/2/2009
978.51, low of 8/17/2009
956.23, high of 6/11/2009
943.29, Gann 50.0% of 2009-2010 range
878.04, Fibonacci 61.8% of 2009-2010 range
874.17, Gann 62.5% of 2009-2010 range
869.32, low of 7/8/2009
805.17, Gann 75.0% of 2009-2010 range
785.13, Fibonacci 78.6% of 2009-2010 range
666.79, intraday low of 3/6/2009

One-Day Ranking of Major ETFs, Ranked from Strongest to Weakest of the Day:
% Price Change, ETF Name, Symbol

1.49% Japan Index, EWJ
1.28% South Africa Index, EZA
1.21% Belgium Index, EWK
0.96% Latin Am 40, ILF
0.94% Austria Index, EWO
0.89% REIT Wilshire, RWR
0.87% Consumer Discretionary SPDR, XLY
0.87% Real Estate US DJ, IYR
0.80% Realty Cohen & Steers, ICF
0.79% Spain Index, EWP
0.78% Agriculture DB PS, DBA
0.77% EMU Europe Index, EZU
0.77% Value EAFE MSCI, EFV
0.77% REIT VIPERs, VNQ
0.75% Growth MidCap 400 B, IJK
0.74% Netherlands Index, EWN
0.72% Turkey MSCI iS, TUR
0.72% Mexico Index, EWW
0.71% India PS, PIN
0.71% Pacific VIPERs, VPL
0.70% France Index, EWQ
0.68% Bond EmrgMkt JPM iS, EMB
0.66% India Earnings WTree, EPI
0.65% European VIPERs, VGK
0.60% Germany Index, EWG
0.60% Switzerland Index, EWL
0.58% MidCap S&P 400 SPDRs, MDY
0.55% MidCap S&P 400 iS, IJH
0.55% EAFE Index, EFA
0.54% Dividend International, PID
0.52% South Korea Index, EWY
0.52% Growth SmallCap VIPERs, VBK
0.52% Singapore Index, EWS
0.51% Emerging Markets, EEM
0.51% Networking, IGN
0.51% Small Cap EAFE MSCI iS, SCZ
0.51% Bond, High-Yield Corporate, HYG
0.50% Global ex US ACWI iS, ACWX
0.49% Metals & Mining SPDR, XME
0.47% United Kingdom Index, EWU
0.46% Emerging 50 BLDRS, ADRE
0.46% Growth EAFE MSCI, EFG
0.44% Energy VIPERs, VDE
0.44% Emerging VIPERs, VWO
0.42% Growth MidCap Russell, IWP
0.41% Energy SPDR, XLE
0.40% Bond, High-Yield Junk, JNK
0.40% Energy DJ, IYE
0.39% Sweden Index, EWD
0.39% Small Cap VIPERs, VB
0.37% Brazil Index, EWZ
0.37% Natural Resource iS GS, IGE
0.36% Europe 350 S&P Index, IEV
0.36% Value MidCap S&P 400 B, IJJ
0.34% Growth SmallCap R 2000, IWO
0.32% Value SmallCap Russell 2000, IWN
0.32% Value SmallCap VIPERS, VBR
0.29% Growth LargeCap NASDAQ 100, QQQQ
0.29% Transportation Av DJ, IYT
0.29% Bond Ex-US Treas, BWX
0.28% Silver Trust iS, SLV
0.28% MidCap Russell, IWR
0.27% SmallCap Russell 2000, IWM
0.26% Growth BARRA Small Cap 600, IJT
0.25% Growth VIPERs, VUG
0.24% Canada Index, EWC
0.24% Russia MV, RSX
0.23% Basic Materials DJ US, IYM
0.23% Water Resources, PHO
0.23% LargeCap Blend S&P=Weight R, RSP
0.22% Financial Preferred, PGF
0.22% Growth 1000 Russell, IWF
0.22% Malaysia Index, EWM
0.22% Value MidCap Russell, IWS
0.18% Telecom DJ US, IYZ
0.18% Dividend Appreciation Vipers, VIG
0.17% Energy Global, IXC
0.17% Blend Total Market VIPERs, VTI
0.16% Health Care SPDR, XLV
0.16% Growth S&P 500/BARRA, IVW
0.16% Italy Index, EWI
0.15% China LargeCap Growth G D H USX PS, PGJ
0.15% Dividend DJ Select, DVY
0.14% Bond Muni ATM-Free S&P iS, MUB
0.12% Global 100, IOO
0.11% LargeCap Blend Russell 3000, IWV
0.11% China 25 iS, FXI
0.10% Biotech SPDR, XBI
0.10% Semiconductor SPDR, XSD
0.10% S&P 500 iS LargeCap Blend, IVV
0.09% LargeCap 1000 R, IWB
0.08% Value 1000 Russell, IWD
0.08% SmallCap S&P 600, IJR
0.08% Industrial SPDR, XLI
0.07% LargeCap VIPERs, VV
0.06% Bond, 1-3 Year Treasury, SHY
0.06% Dividend SPDR, SDY
0.05% S&P 500 SPDRs LargeCap Blend, SPY
0.04% Technology SPDR, XLK
0.04% Consumer Staples SPDR, XLP
0.03% Value SmallCap S&P 600 B, IJS
0.03% Bond, Aggregate, AGG
0.02% Info Tech VIPERs, VGT
0.02% Microcap Russell, IWC
0.02% Pacific ex-Japan, EPP
0.02% Bond, TIPS, TIP
0.01% Bond Treasury Short-Term iS, SHV
0.00% Bond, Corp, LQD
0.00% Australia Index, EWA
-0.01% Indonesia MV, IDX
-0.02% Technology DJ US, IYW
-0.02% Value VIPERs, VTV
-0.03% Materials SPDR, XLB
-0.05% Utilities VIPERs, VPU
-0.05% Utilities SPDR, XLU
-0.05% DIAMONDS (DJIA), DIA
-0.06% Homebuilders SPDR, XHB
-0.07% Taiwan Index, EWT
-0.08% Preferred Stock iS, PFF
-0.08% Semiconductor iS IGW, SOXX
-0.12% Dividend High Yield Equity PS, PEY
-0.15% LargeCap Blend S&P 100, OEF
-0.16% Chile MSCI iS, ECH
-0.16% Value S&P 500 B, IVE
-0.17% Value LargeCap Dynamic PS, PWV
-0.20% Capital Markets KWB ST, KCE
-0.21% Hong Kong Index, EWH
-0.23% Value SmallCap S&P 600, RZV
-0.29% Bond, 10 Year Treasury, IEF
-0.43% Financial DJ US, IYF
-0.45% Gold Shares S.T., GLD
-0.46% Financials VIPERs, VFH
-0.50% Thailand MSCI iS, THD
-0.55% Bond, 20+ Years Treasury, TLT
-0.67% Financial SPDR, XLF
-0.77% Commodity Tracking, DBC
-0.87% Financial Services DJ, IYG
-1.14% WilderHill Clean Energy PS, PBW
-2.03% Oil, Crude, U.S. Oil Fund, USO