The S&P 500 Composite (SPX, 1,242.00) rose 12.95 points or 1.05% on Wednesday, October 26, 2011, thereby making back half of its loss on Tuesday.

The close was nearly the same of the open, for a Spinning Top Candlestick, which implies a standoff of bulls and bears.

Short-term Price Momentum continues to diverge bearishly.

There is substantial technical resistance slightly above, from 1246.73 to 1258.07 on the S&P 500.

The recent 3-weeks, short-term upside correction was entirely within normal and expected ranges for a counter-trend minor Ripple bounce.

The Dow Theory signaled a Primary Tide Bear Market on 8/2/11, when both Averages closed below their closing price lows of the previous 11 months. This Bear Market was confirmed on 10/3/11 by lower closing price lows for both Averages.

A Dow Theory Primary Tide Bear Market is a powerful beast that must not be underestimated. The median Dow Theory Primary Tide Bear Market in history lasts 16 months and takes stock prices down 34%.
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Stock Market Indicators

NASDAQ Composite/S&P 500 Relative Strength Ratio has been correcting and consolidating gains over the past 4 weeks. The Ratio rose above previous 10-year highs on 9/23/11, reconfirming a major long-term uptrend.

iShares MSCI BRIC Fund (BKF) Relative Strength Ratio (BKF/SPY) fell below 31-month lows on 10/4/11, reconfirming a major long-term downtrend. This basket of the stocks of Brazil, Russia, India, and China is in a relatively bearish major trend.

Emerging Markets Stocks ETF (EEM) Relative Strength Ratio (EEM/SPY) broke down below 29-month lows on 9/22/11, reconfirming its preexisting bearish major trend. Absolute price broke down below 2-year lows on 10/4/11.

Foreign Stocks ETF (EFA) Relative Strength Ratio (EFA/SPY) broke down below 7-year lows on 9/19/11, reconfirming its preexisting bearish major trend. Absolute price broke down below 2-year lows on 10/4/11.

The Largest Cap S&P 100/S&P 500 Relative Strength Ratio (OEX/SPX) turned upward on 10/25/11, following a 3-weeks correction to the downside. Large Caps tend to underperform Mid Caps and Small Caps in bullish general market trends as investors prefer riskier and more volatile stocks. Large Caps tend to outperform in bearish general market trends as investors seek the perceived relative safety of large size.

The Small Cap Russell 2000 Index/Large Cap Relative Strength Ratio (IWM/SPY) broke down below the lows of the previous 20-months on 10/3/11, thereby reconfirming a major downtrend.

The S&P Mid Cap 400/Large Cap Relative Strength Ratio (MDY/SPY) broke down below the lows of the previous 18-months on 10/3/11, reconfirming a bearish long-term major trend.

Advisory Service Sentiment: There were 40.0% Bulls versus 37.9% Bears as of 10/26/11, according to the weekly Investors Intelligence survey of stock market newsletter advisors. The Bull/Bear Ratio rose to 1.06, up from 0.87 the previous week. The Bull/Bear Ratio has been relatively low for 10 consecutive weeks, since 8/24/11. The 20-year median is 1.56 and the mean is 1.64.

VIX Fear Index fell to 28.08 on 10/14/11, down from a high of 48.00 on 8/8/11, suggesting that fear has decreased from August levels. 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 S&P 500 Composite (SPX: 1,242.00) 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
1370.58, high of 5/2/11
1359.44, high of 5/10/11
1356.48, high of 7/7/11
1347.00, high of 7/21/11
1307.28, Fibonacci 78.6% of 2011 range
1274.41, 200-day SMA
1258.07, low of 6/16/11
1257.58, Fibonacci 61.8% of 2011 range
1256.55, high of 10/24/11
1249.05, low of 3/16/11
1246.73, high of 12/13/10

S&P 500 Composite (SPX: 1,242.00) Potential Support
1238.81, Fibonacci 78.6% of 1,576.09 high
1222.68, Fibonacci 50% of 2011 range
1221.06, low of 10/26/2011
1204.49, Fibonacci 23.6% of 2009-11 range
1190.58, low of 10/13/2011
1187.77, Fibonacci 38.2% of 2011 range
1144.38, Fibonacci 23.6% of 2011 range
1101.73, Fibonacci 38.2% of 2009-11 range
1074.77, low of 10/4/2011
1039.70, low of 8/27/10
1039.31, Fibonacci 23.6% of June-Aug. 2010 range
1010.91, low of 7/1/2010
1018.69, Fibonacci 50% of 2009-11 range
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
935.64, Fibonacci 61.8% of 2009-11 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
817.40, Fibonacci 78.6% of 2009-11 range
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

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Tangible Assets, Commodities

U.S. dollar ETF (UUP) price fell below the lows of the previous 7 weeks on 10/26/11, reconfirming its preexisting short-term downside correction. Support 21.42 and 20.84. Resistance 21.91 and 22.63.

Agriculture, PowerShares DB Agriculture Fund ETF (DBA) fell below the lows of the previous 10 months on 10/3/11, which reconfirmed a major long-term downtrend.

Crude Oil, United States Oil ETF (USO) price rose above the highs of the previous 11 weeks on 10/25/11, extending a minor 3-weeks bounce. Longer term, USO broke down below 2-year lows on 10/4/11 to confirm a major bear market. Support 32.52, 29.10, 26.28, and 22.74. Resistance 36.49, 39.25, 40.74, and 45.60.

Gold, SPDR Gold Shares ETF (GLD) price rose above the highs of the previous 4 weeks on 10/26/11, confirming an end of a downside short-term correction. Longer term, new highs on 9/6/11 confirmed a major bull market. Support: 154.19, 153.61, 147.19, 143.97, 143.42, and 142.55. Resistance: 169.25, 170.32, 172.20, 177.40, and 185.85.

Gold Mining Stocks ETF/ Gold Shares ETF Relative Strength Ratio (GDX/GLD) remains bearishly below its falling 50-day and 200-day SMAs. GDX/GLD fell below 29-month lows on 8/8/11, reconfirming a bearish major trend for the long term. Investors still prefer Gold bullion over Gold Miners.

Silver, iShares Silver Trust ETF (SLV) > price rose above the highs of the previous 5 weeks on 10/26/11, confirming an end of a downside short-term correction. Longer term, SLV price broke down below the lows of the previous 7 months on 9/26/11, which confirmed a bearish major trend for the long term. SLV fell back below its 50-day SMA on 9/19/11 and fell below its 200-day SMA on 9/22/11. Support 27.41, 26.03, and 24.44. Resistance: 32.91, 34.51, 40.23, 41.49, 42.30, 42.78, 44.71 and 48.35.

Silver/Gold ETFs Ratio (SLV/GLD) broke out above 4-weeek highs on 10/25/11, suggesting a short-term bounce. Longer term, the SLV/GLD Ratio broke down below the lows of the previous 11 months on 9/30/11, reconfirming a bearish major trend. SLV/GLD has been mostly weak since peaking on 4/28/11. This means investors prefer Gold over Silver.

Copper, iPath DJ-UBS Copper TR Sub-Index ETN (JJC) price rose above the highs of the previous 5 weeks on 10/26/11, confirming a short-term upside correction. Longer term, JJC broke down below the lows of the previous 14 months on 10/5/11, confirming a bearish major trend. Major trend weakness in Copper suggests serious concerns about the economic outlook.
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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
10.25% , MDP , MEREDITH
11.06% , MHS , MEDCO HEALTH
13.49% , ESRX , EXPRESS SCRIPTS
0.06% , PPA , Aerospace & Defense, PPA
9.40% , BIIB , BIOGEN IDEC
7.38% , MCK , MCKESSON CORP
5.86% , GS , GOLDMAN SACHS
9.81% , NBR , NABORS
0.91% , JKK , Growth SmallCap iS M, JKK
1.63% , VB , Small Cap VIPERs, VB
1.02% , NYC , LargeCap Blend NYSE Composite iS, NYC
1.06% , IOO , Global 100, IOO
6.97% , PTEN , Patterson-UTI Energy Inc
5.21% , HAR , Harman International
8.45% , ATI , ALLEGHENY TECH
1.34% , SCZ , Small Cap EAFE MSCI iS, SCZ
4.46% , BA , BOEING
4.10% , WYN , Wyndham Worldwide
2.99% , GLW , CORNING
3.81% , RHT , Red Hat Inc.
4.03% , FXI , China 25 iS, FXI
3.28% , ABC , AMERISOURCEBERGN
2.99% , TEVA , Teva Pharmaceutical Industries Limited
1.68% , PPH , Pharmaceutical H, PPH
15.16% , VLO , VALERO ENERGY
1.14% , AM , AMER GREETINGS STK A
1.55% , ADRD , Developed 100 BLDRS, ADRD
5.56% , RFMD , RF Micro Devices Inc
2.72% , HES , AMERADA HESS
1.37% , FEU , Value LargeCap Euro STOXX 50 DJ, FEU
1.59% , IWW , Value LargeCap Russell 3000, IWW
4.92% , MCO , MOODYS CORP
4.10% , MPEL , Melco Crown Entertainment, MPEL

Bearish Stocks: Falling Price and Rising Volume
Ranked by Price Change * Volume Change
% Price Change, Symbol, Name
-22.39% , HGSI , Human Genome Sciences Inc
-11.05% , BMS , BEMIS
-9.15% , TMO , THERMO ELECTRON
-12.10% , RSH , RADIOSHACK
-16.75% , DV , DeVry, Inc.
-8.19% , CHRW.O , CH Robinson Worldwide Inc, CHRWD
-4.90% , BCR , C R BARD
-6.96% , RIMM , RESEARCH IN MOTION LTD
-7.31% , PWER , POWER ONE
-12.66% , AMZN , Amazoncom Inc
-3.70% , AGN , ALLERGAN
-7.04% , S , SPRINT NEXTEL
-3.31% , AVY , AVERY DENNISON
-3.64% , DPS , Dr Pepper Snapple Group
-5.68% , JNY , JONES APPAREL
-4.51% , F , FORD MOTOR
-3.24% , RTN , RAYTHEON
-1.69% , WAG , WALGREEN
-1.93% , ISIL , INTERSIL CORP
-1.64% , CTXS , CITRIX SYSTEMS
-7.17% , HHH , Internet H, HHH
-1.91% , ROST , Ross Stores Inc
-2.10% , GD , GENERAL DYNAMICS
-2.08% , BMC.O , BMC SOFTWARE
-3.22% , LMT , LOCKHEED MARTIN
-0.88% , NI , NISOURCE
-1.56% , LLL , L-3 COMMS HLDGS
-0.96% , TJX , TJX
-1.15% , HSP , HOSPIRA
-1.81% , TXT , TEXTRON
-1.38% , QCOM , QUALCOMM
-1.04% , VRSN , VeriSign Inc
-0.31% , PSTL , Steel Global PS ETF, PSTL
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One-Day Ranking of Major ETFs, Ranked from Strongest to Weakest of the Day:
% Price Change, ETF Name, Symbol
4.03% China 25 iS, FXI
3.36% Russia MV, RSX
2.94% Sweden Index, EWD
2.48% Energy VIPERs, VDE
2.46% Latin Am 40, ILF
2.35% China LargeCap Growth G D H USX PS, PGJ
2.20% Metals & Mining SPDR, XME
2.19% Basic Materials DJ US, IYM
2.18% Homebuilders SPDR, XHB
2.18% Energy DJ, IYE
2.16% Energy SPDR, XLE
2.15% Microcap Russell, IWC
2.11% Water Resources, PHO
2.05% Indonesia MV, IDX
2.05% Semiconductor SPDR, XSD
2.04% Energy & Nat Res iS GS, IGE
2.02% Emerging 50 BLDRS, ADRE
2.01% Value SmallCap S&P 600 B, IJS
1.94% France Index, EWQ
1.89% Mexico Index, EWW
1.89% Financial Services DJ, IYG
1.89% Energy Global, IXC
1.86% Canada Index, EWC
1.84% Emerging Markets, EEM
1.84% European VIPERs, VGK
1.83% Hong Kong Index, EWH
1.81% Europe 350 S&P Index, IEV
1.80% Materials SPDR, XLB
1.80% Capital Markets KWB ST, KCE
1.79% Emerging VIPERs, VWO
1.77% Silver Miners Global X, SIL
1.77% Financial SPDR, XLF
1.76% WilderHill Clean Energy PS, PBW
1.72% SmallCap Russell 2000, IWM
1.71% Financials VIPERs, VFH
1.71% South Africa Index, EZA
1.65% Brazil Index, EWZ
1.65% Growth SmallCap R 2000, IWO
1.63% Pacific ex-Japan, EPP
1.63% United Kingdom Index, EWU
1.63% Small Cap VIPERs, VB
1.62% Growth SmallCap VIPERs, VBK
1.62% SmallCap S&P 600, IJR
1.60% Global ex US ACWI iS, ACWX
1.57% Financial DJ US, IYF
1.53% Thailand MSCI iS, THD
1.53% Growth BARRA Small Cap 600, IJT
1.52% Value SmallCap Russell 2000, IWN
1.48% Frontier Markets Guggenheim , FRN
1.47% Value MidCap S&P 400 B, IJJ
1.44% EMU Europe Index, EZU
1.43% Australia Index, EWA
1.42% Value S&P 500 B, IVE
1.42% Value MidCap Russell, IWS
1.42% Value VIPERs, VTV
1.39% DIAMONDS (DJIA), DIA
1.38% Growth EAFE MSCI, EFG
1.38% Value SmallCap VIPERS, VBR
1.37% EAFE Index, EFA
1.35% Chile MSCI iS, ECH
1.34% Small Cap EAFE MSCI iS, SCZ
1.34% Health Care SPDR, XLV
1.33% Value 1000 Russell, IWD
1.32% Italy Index, EWI
1.27% MidCap S&P 400 SPDRs, MDY
1.26% Austria Index, EWO
1.23% Value LargeCap Dynamic PS, PWV
1.22% MidCap S&P 400 iS, IJH
1.21% Belgium Index, EWK
1.17% Value EAFE MSCI, EFV
1.17% Spain Index, EWP
1.17% Taiwan Index, EWT
1.17% LargeCap Blend Russell 3000, IWV
1.15% Germany Index, EWG
1.14% Growth MidCap 400 B, IJK
1.13% Dividend International, PID
1.09% Gold Shares S.T., GLD
1.09% LargeCap Blend S&P=Weight R, RSP
1.09% Blend Total Market VIPERs, VTI
1.06% Global 100, IOO
1.05% Telecom DJ US, IYZ
1.04% India PS, PIN
1.03% LargeCap VIPERs, VV
1.03% Turkey MSCI iS, TUR
1.02% S&P 500 SPDRs LargeCap Blend, SPY
1.01% S&P 500 iS LargeCap Blend, IVV
1.01% Singapore Index, EWS
1.01% Realty Cohen & Steers, ICF
1.00% REIT Wilshire, RWR
1.00% Consumer Staples SPDR, XLP
0.98% MidCap Russell, IWR
0.97% LargeCap 1000 R, IWB
0.95% Switzerland Index, EWL
0.93% Real Estate US DJ, IYR
0.92% Dividend SPDR, SDY
0.90% LargeCap Blend S&P 100, OEF
0.86% Dividend DJ Select, DVY
0.80% Dividend High Yield Equity PS, PEY
0.80% Networking, IGN
0.78% Pacific VIPERs, VPL
0.78% Growth MidCap Russell, IWP
0.78% Financial Preferred, PGF
0.76% Dividend Appreciation Vipers, VIG
0.74% REIT VIPERs, VNQ
0.71% Biotech SPDR, XBI
0.71% Industrial SPDR, XLI
0.68% Growth 1000 Russell, IWF
0.67% Growth VIPERs, VUG
0.65% Growth S&P 500/BARRA, IVW
0.61% South Korea Index, EWY
0.59% Netherlands Index, EWN
0.57% India Earnings WTree, EPI
0.55% Info Tech VIPERs, VGT
0.52% Bond Ex-US Treas, BWX
0.51% Utilities VIPERs, VPU
0.49% Preferred Stock iS, PFF
0.45% Transportation Av DJ, IYT
0.45% Technology DJ US, IYW
0.43% Technology SPDR, XLK
0.43% Bond, High-Yield Corporate, HYG
0.41% Utilities SPDR, XLU
0.33% Semiconductor iS IGW, SOXX
0.32% Bond EmrgMkt JPM iS, EMB
0.30% Malaysia Index, EWM
0.24% Bond Muni ATM-Free S&P iS, MUB
0.22% Silver Trust iS, SLV
0.16% Japan Index, EWJ
0.00% Bond Treasury Short-Term iS, SHV
-0.05% Bond, High-Yield Junk, JNK
-0.06% Bond, 1-3 Year Treasury, SHY
-0.07% Bond, Corp, LQD
-0.09% Bond, TIPS, TIP
-0.12% QQQ Nasdaq 100 Trust, QQQ
-0.27% Bond, Aggregate, AGG
-0.38% Consumer Discretionary SPDR, XLY
-0.58% Commodity Tracking, DBC
-0.73% Bond, 10 Year Treasury, IEF
-0.75% Agriculture DB PS, DBA
-1.03% Oil Fund PowerShares, DBO
-1.75% Bond, 20+ Years Treasury, TLT
-2.07% Oil, Crude, U.S. Oil Fund, USO