The NYSE Composite stock price index and the NYSE Cumulative Daily Advance-Decline Line both rose above previous 2-year highs, reconfirming their preexisting bullish major trends.

Energy stock sector Relative Strength Ratio (XLE/SPY) rose above 14-month highs, reconfirming its preexisting bullish major trend. Absolute price of XLE rose above 2-year highs, reconfirming its preexisting bullish major trend.

The U.S. dollar fell below 5-week lows, reconfirming a short-term downtrend.

CRB Index of commodity prices rose above 2-year highs, reconfirming its preexisting bullish major trend.

Crude Oil rose above 2-year highs, reconfirming its preexisting bullish major trend.

Silver/Gold Ratio rose above 3-year highs, reconfirming its preexisting bullish major trend. Silver has outperformed Gold substantially since 8/20/10.

Silver rose above previous 30-year highs, reconfirming its preexisting bullish major trend for the long term.

Gold rose further above 3-week highs, reconfirming its preexisting short-term uptrend.

Copper rose above multi-year highs, reconfirming its preexisting bullish major trend.

CRB Index of commodity prices rose above 2-year highs, reconfirming its preexisting bullish major trend.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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
0.32% , PSQ , Short 100% QQQ, PSQ
2.74% , NVDA , NVIDIA
1.72% , R , RYDER SYSTEM
0.45% , TBH , Telebras HOLDRS, TBH
1.31% , IAU , Gold COMEX iS, IAU
2.09% , WYNN , Wynn Resorts L
1.29% , EL , Estee Lauder
1.34% , PEG , PUBL SVC ENTER
0.60% , EFA , EAFE Index, EFA
1.10% , EWP , Spain Index, EWP
0.65% , ADRE , Emerging 50 BLDRS, ADRE
0.64% , BDH , Broadband H, BDH
0.99% , EWU , United Kingdom Index, EWU
1.23% , GLD , Gold Shares S.T., GLD
0.67% , IEV , Europe 350 S&P Index, IEV
0.95% , EWW , Mexico Index, EWW
0.88% , BWX , Bond Ex-US Treas, BWX
0.39% , IOO , Global 100, IOO
0.64% , EWL , Switzerland Index, EWL
0.62% , WPI , WATSON PHARM
1.81% , DISH , EchoStar Communications
1.35% , EWN , Netherlands Index, EWN
0.89% , NWL , NEWELL RUBBER
1.68% , S , SPRINT NEXTEL
0.61% , VIA , VIACOM INC. (New)
1.16% , JBL , JABIL CIRCUIT
0.54% , TNB , THOMAS & BETTS
1.80% , CAR , Avis Budget Group, Inc. (CAR)
1.51% , EWO , Austria Index, EWO
0.46% , NCR , NCR
0.46% , ACWX , Global ex US ACWI iS, ACWX
0.31% , WPO , Washington Post
0.99% , LAMR , Lamar Advertising Company

Bearish Stocks: Falling Price and Rising Volume
Ranked by Price Change * Volume Change
% Price Change, Symbol, Name
-0.55% , PIC , Insurance, PIC
-0.52% , ONEQ , Growth LargeCap NASDAQ Fidelity, ONEQ
-1.38% , BLL , BALL
-1.33% , CECO , CAREER EDUCATION CORP
-1.97% , LPX , LOUISIANA PAC
-0.84% , PSJ , Software, PSJ
-2.90% , EK , EASTMAN KODAK
-1.14% , HSIC , Henry Schein Inc
-0.30% , VHT , Health Care VIPERs, VHT
-0.81% , JKJ , SmallCap Core iS M, JKJ
-1.44% , ERTS , ELECTRONIC ARTS
-0.91% , HANS , Hansen Natural, HANS
-1.50% , AMZN , Amazoncom Inc
-1.27% , PMTC.O , PARAMETRIC
-0.48% , PEJ , Leisure & Entertainment, PEJ
-2.50% , ININ , Interactive Intelligence ININ
-1.08% , IJR , SmallCap S&P 600, IJR
-1.14% , IJS , Value SmallCap S&P 600 B, IJS
-0.71% , HAR , Harman International
-1.43% , KLAC , KLA TENCOR
-0.82% , IWO , Growth SmallCap R 2000, IWO
-0.89% , JNY , JONES APPAREL
-0.87% , PMR , Retail, PMR
-1.06% , HHH , Internet H, HHH
-0.92% , PWT , Growth SmallCap Dynamic PS, PWT
-1.42% , ISIL , INTERSIL CORP
-1.94% , BSX , BOSTON SCIENT
-1.07% , EBAY , EBAY
-0.47% , IJH , MidCap S&P 400 iS, IJH
-0.36% , RTH , Retail H, RTH
-0.69% , VBK , Growth SmallCap VIPERs, VBK
-0.66% , MDP , MEREDITH
-1.18% , LRCX , LAM RESEARCH CORP

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

Energy (XLE) Bullish, Over Weight. The Relative Strength Ratio (XLE/SPY) rose further above 14-month highs on 12/31/10 highs, reconfirming its preexisting bullish major trend. Absolute price of XLE rose above 2-year highs on 12/31/10, reconfirming its preexisting bullish major trend. Support 65.25, 65.03, 60.96, 60.21, 57.70, 55.68, 53.22, 50.33, 48.56, 46.16, and 43.66. Resistance 69.95 and 78.10.

Materials (XLB) Bullish, Over Weight. The Relative Strength Ratio (XLB/SPY) rose above 11-month highs on 12/30/10 and remains bullish. Absolute price rose above 2-year highs on 12/30/10 and remains bullish. Support 34.20, 33.70, 32.36, 29.88, 29.43, and 27.67. Resistance 39.00, 40.15, and 41.06.

Consumer Discretionary (XLY) Neutral, Market Weight. The Relative Strength Ratio (XLY/SPY) crossed below its 50-day SMA on 12/27/10, thereby turning neutral. Absolute price rose above 3-year highs on 12/7/10 and remains bullish. Support 37.29, 37.15, 36.61, 36.13, 35.32, 35.02, 34.78, 33.94, 33.11, 32.66, 31.70, 29.80, 28.64, 28.21, and 26.62. Resistance 37.88, 39.09, 40.13, and 40.70.

Industrial (XLI) Bullish, Over Weight. The Relative Strength Ratio (XLI/SPY) rose above 2-year highs on 12/16/10 and remains bullish. Absolute price rose above 2-year highs on 12/29/10 and remains bullish. Support 31.82, 31.58, 30.79, 30.51, 30.32, 29.77, and 27.67. Resistance 35.00 and 36.16.

Technology (XLK) Neutral, Market Weight. The Relative Strength Ratio (XLK/SPY) fell below 8-week lows on 12/16/10 and turned neutral for the secondary trend. This RS ratio rose above 8-year highs on 11/3/10, which was a bullish confirmation of the primary uptrend. Absolute price of XLK rose above 2-year highs on 12/29/10 and remains bullish. Support 23.87, 23.74, 23.64, 23.56, 22.68, 22.53, 21.60, 20.01, and 19.51. Resistance 25.32 and 25.69.

Financial (XLF) Neutral, Market Weight. The Relative Strength Ratio (XLF/SPY) rose above its 50-day SMA on 12/8/10, thereby turning neutral. Absolute price turned bullish as of 12/22/10 when the rising 50-day SMA crossed above the rising 200-day SMA. Support 15.39, 15.08, 14.36, 14.25, 14.20, 13.29, and 13.08. Resistance 16.13, 16.90, 17.12, 17.16, and 17.87.

Consumer Staples (XLP) Bearish, Under Weight. The Relative Strength Ratio (XLP/SPY) fell further below 7-month lows on 12/27/10 and remains bearish. Absolute price rose above 2-year highs on 12/16/10 and remains bullish. Support 29.23, 29.10, 28.22, 28.04, 27.76, 27.63, 27.46, 26.34, 25.30, and 24.95. Resistance 30.29.

Health Care (XLV) Bearish, Under Weight. The Relative Strength Ratio (XLV/SPY) fell below 2-year lows on 12/9/10 and remains bearish, as it has been most of the time since peaking on 2/23/09. Thanks to a bounce over the past 3-days, absolute price of XLV is technically bullish. Support 30.14, 30.11, 29.87, 28.00, 27.49. Resistance 31.79, 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 7-month lows on 12/21/10 and remains bearish. Absolute price of XLU fell below 4-year lows on 12/21/10. Support 30.51, 29.66, 27.91, 27.44, and 25.76. Resistance 32.11 and 32.40.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Emerging Markets Stocks ETF (EEM) Relative Strength Ratio (EEM/SPY) fell further below 4-month lows on 12/28/10 and remains neutral.

Foreign Stocks ETF (EFA) Relative Strength Ratio (EFA/SPY) broke down below 5-month lows on 11/30/10 and remains neutral.

NASDAQ Composite/S&P 500 Relative Strength Ratio fell below 6-week lows and its 50-day SMA on 12/31/10, turning neutral for the intermediate-term. The ratio rose above 9-year highs on 11/26/10, confirming a bullish Primary uptrend for the longer-term.

The Largest Cap S&P 100/S&P 500 Relative Strength Ratio (OEX/SPX) fell below 28-year lows on 12/3/10. This RS 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 20-year highs on 12/21/10 and remains bullish. Absolute price closed above 2-year closing price highs on 12/27/10 and remains bullish.

The S&P MidCap 400/Large Cap Relative Strength Ratio (MDY/SPY) rose above 15-year highs on 12/17/10 and remains bullish. Absolute price closed above 2-year closing price highs on 12/22/10 and remains bullish.

CRB Index of commodity prices rose above 2-year highs on 12/31/20, thereby reconfirming its preexisting bullish major trend.

Crude Oil nearest futures contract price rose above 2-year highs on 12/31/20, thereby reconfirming its preexisting bullish major trend. Support 87.43, 86.83, 83.55, 80.28, 80.06, 79.84, 79.25, 78.86, 72.63, 70.76, 70.35, 69.51, 68.59, 67.15, 65.05, and 64.24. Resistance 98.65 and 102.84.

Gold nearest futures contract price rose further above 3-week highs on 12/31/10, confirming a short-term uptrend. Gold rose above previous all-time highs and confirmed a bullish major trend on 12/7/10. Support 1361.6, 1352.6, 1329.0, 1325.5, 1317.5, 1297.0, 1274.8, 1270.5, 1232.4, 1210.9, 1191.5, and 1155.6. Resistance: 1432.5.

Gold Mining Stocks ETF (GDX) Relative Strength Ratio (relative to the Gold bullion ETF, GDX/GLD) has turned neutral since peaking on 12/6/10.

Silver nearest futures contract price rose above previous 30-year highs on 12/31/10, thereby confirming its preexisting bullish major trend for the long term.

Silver/Gold Ratio rose above 3-year highs on 12/31/10, again confirming a bullish trend. Silver has outperformed Gold substantially since 8/20/10.

Copper nearest futures contract price rose above multi-year highs on 12/31/10, thereby reconfirming its preexisting bullish major trend. Strength in Copper suggests confidence about prospects for the world economy, while weakness in Copper suggests doubts. Support 4.205, 4.08, 3.9795, 3.6065, 3.3930, 3.1775, 2.9285, 2.8555, 2.8445, and 2.72. Resistance: none.

U.S. Treasury Bond nearest futures contract price rose above 2-week highs on 12/31/10, suggesting a possible minor bounce for the short term. The bond contract fell below the lows of the previous 7 months on 12/15/10, confirming a bearish major trend. Support 118.21, 118.12, 115.15, 114.06, 113.04, and 112.15. Resistance 121.20, 122.02, 123.26, 128.00 129.14, 129.27, 132.26, 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 8-month highs on 12/28/10 and remains bullish. JNK absolute price rose above 6-week highs on 12/27/10, which is bullish for the short term. Price rose above 2-year highs on 11/4/10 and remains bullish for the longer term.

U.S. Treasury Inflation Protected / U.S. Treasury 7-10 Year Relative Strength Ratio (TIP/IEF) has firmed up moderately since making a low on 8/24/10, even as absolute price of TIP has declined. A rising RS ratio implies that fixed-income investors have been selling inflation protected Notes at a relatively more subdued pace compared to the U.S. Treasury 7-10 Year Note (IEF) over the past 4 months.

The U.S. dollar nearest futures contract price fell below 5-week lows on 12/31/10, reconfirming a short-term downtrend. USD may have found resistance near its 200-day SMA, which stands near chart resistance at 81.525 to 82.02. Longer term, USD fell below 11-month lows on 11/3/10, thereby confirming a bearish long-term price trend. Support 78.01, 75.23, 74.27, and 70.80. Resistance 81.185, 81.525, 81.935, 82.02, 83.64, 84.73, 85.36, 86.71, 88.80, 89.22, 89.71, and 92.53.

Advisory Service Sentiment: There were 55.6% Bulls versus 20.0% Bears as of 12/29/10, according to the weekly Investors Intelligence survey of stock market newsletter advisors. The Bull/Bear ratio stands at 2.78, which is nearly two standard deviations above the long-term, 20-year mean. This is not overly excessive bullish sentiment in the second year of a bull market. Bullish Sentiment tends to rise in November and December every year. The ratio was as high as it is now or higher in Decembers of each year 2003, 2004, 2005, and 2006, and none of these “high” readings led to bear markets. The 20-year range is 0.41 to 3.74, the median is 1.54, and the mean is 1.61.

VIX Fear Index fell below 8-month lows to 15.40 on 12/23/10, reflecting diminishing fear among options players. VIX is near its 3-year low of 15.23 set on 4/12/10. Before we take the current level of VIX as a sell signal, however, we might consider that VIX was as low as 9.89 on 1/24/07, nearly 10 months before the final tops in the price indexes. 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 12/29/10, when both the Dow-Jones Industrial Average and the Dow-Jones Transportation Average closed above closing price highs of the previous 2-years. 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. While other Dow Theorists were fooled by the big downside Secondary Reaction in May and June 2010 and called a “Bear Market”, my interpretation of the Dow Theory has been steadily Bullish on the Primary Tide Trend every day since 7/23/09.

S&P 500 Composite (SPX, 1,257.64) consolidated gains after closing above highs of the previous 2-years on 12/29/10, and thereby confirming the Dow Theory Bullish Primary Tide 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

S&P 500 Cash Index Potential Support
1251.48, low of 12/27/10
1238.81, Fibonacci 78.6% of 1,576.09 high
1235.05, high of 12/7/10
1232.85, low of 12/16/10
1228.74, Fibonacci 61.8% of 2007-2009 range
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

2.31% Oil, Crude, U.S. Oil Fund, USO
1.89% Commodity Tracking, DBC
1.57% Agriculture DB PS, DBA
1.51% Austria Index, EWO
1.41% Silver Trust iS, SLV
1.38% India Earnings WTree, EPI
1.35% Netherlands Index, EWN
1.23% India PS, PIN
1.23% Gold Shares S.T., GLD
1.17% Italy Index, EWI
1.15% EMU Europe Index, EZU
1.11% Bond, 20+ Years Treasury, TLT
1.10% Spain Index, EWP
1.08% Belgium Index, EWK
1.07% European VIPERs, VGK
1.03% Taiwan Index, EWT
0.99% United Kingdom Index, EWU
0.98% China 25 iS, FXI
0.95% Mexico Index, EWW
0.88% Bond Ex-US Treas, BWX
0.86% Financial Preferred, PGF
0.84% Malaysia Index, EWM
0.84% Small Cap EAFE MSCI iS, SCZ
0.74% Sweden Index, EWD
0.72% Germany Index, EWG
0.70% Emerging Markets, EEM
0.69% Bond, TIPS, TIP
0.67% Latin Am 40, ILF
0.67% Europe 350 S&P Index, IEV
0.65% Emerging 50 BLDRS, ADRE
0.64% Switzerland Index, EWL
0.64% Emerging VIPERs, VWO
0.63% Value EAFE MSCI, EFV
0.62% South Africa Index, EZA
0.62% France Index, EWQ
0.60% EAFE Index, EFA
0.60% Indonesia MV, IDX
0.59% South Korea Index, EWY
0.57% Chile MSCI iS, ECH
0.55% Brazil Index, EWZ
0.51% Singapore Index, EWS
0.50% Bond, 10 Year Treasury, IEF
0.49% China LargeCap Growth G D H USX PS, PGJ
0.49% Energy Global, IXC
0.47% Growth EAFE MSCI, EFG
0.46% Global ex US ACWI iS, ACWX
0.44% Bond EmrgMkt JPM iS, EMB
0.42% Thailand MSCI iS, THD
0.41% Bond, Aggregate, AGG
0.39% Preferred Stock iS, PFF
0.39% Global 100, IOO
0.37% Japan Index, EWJ
0.25% Bond, Corp, LQD
0.23% Canada Index, EWC
0.22% Natural Resource iS GS, IGE
0.18% Bond, High-Yield Corporate, HYG
0.18% Bond, High-Yield Junk, JNK
0.17% Telecom DJ US, IYZ
0.16% Financial Services DJ, IYG
0.16% DIAMONDS (DJIA), DIA
0.15% Financials VIPERs, VFH
0.15% Energy SPDR, XLE
0.14% Basic Materials DJ US, IYM
0.14% Pacific VIPERs, VPL
0.13% Dividend International, PID
0.13% Financial SPDR, XLF
0.12% Bond, 1-3 Year Treasury, SHY
0.11% Industrial SPDR, XLI
0.10% Transportation Av DJ, IYT
0.08% Australia Index, EWA
0.06% Value 1000 Russell, IWD
0.05% LargeCap Blend S&P 100, OEF
0.05% Financial DJ US, IYF
0.05% Bond Muni ATM-Free S&P iS, MUB
0.05% Value S&P 500 B, IVE
0.04% Value VIPERs, VTV
0.03% Consumer Staples SPDR, XLP
0.03% Utilities SPDR, XLU
0.02% S&P 500 SPDRs LargeCap Blend, SPY
0.02% Semiconductor iS IGW, SOXX
0.01% Bond Treasury Short-Term iS, SHV
0.01% S&P 500 iS LargeCap Blend, IVV
-0.02% LargeCap VIPERs, VV
-0.02% Pacific ex-Japan, EPP
-0.03% LargeCap 1000 R, IWB
-0.03% Health Care SPDR, XLV
-0.05% Blend Total Market VIPERs, VTI
-0.05% Energy DJ, IYE
-0.05% LargeCap Blend S&P=Weight R, RSP
-0.05% Value LargeCap Dynamic PS, PWV
-0.08% Growth S&P 500/BARRA, IVW
-0.08% Materials SPDR, XLB
-0.10% Capital Markets KWB ST, KCE
-0.11% LargeCap Blend Russell 3000, IWV
-0.11% Energy VIPERs, VDE
-0.11% Growth VIPERs, VUG
-0.12% Technology SPDR, XLK
-0.12% Real Estate US DJ, IYR
-0.13% Dividend Appreciation Vipers, VIG
-0.13% Utilities VIPERs, VPU
-0.14% Growth 1000 Russell, IWF
-0.15% Semiconductor SPDR, XSD
-0.18% MidCap Russell, IWR
-0.18% Networking, IGN
-0.20% REIT Wilshire, RWR
-0.20% REIT VIPERs, VNQ
-0.21% Turkey MSCI iS, TUR
-0.21% Consumer Discretionary SPDR, XLY
-0.22% Value MidCap Russell, IWS
-0.23% Homebuilders SPDR, XHB
-0.25% Technology DJ US, IYW
-0.27% Realty Cohen & Steers, ICF
-0.28% Dividend DJ Select, DVY
-0.29% Dividend SPDR, SDY
-0.34% Info Tech VIPERs, VGT
-0.34% Russia MV, RSX
-0.35% Metals & Mining SPDR, XME
-0.35% Growth MidCap Russell, IWP
-0.37% Growth LargeCap NASDAQ 100, QQQQ
-0.44% Microcap Russell, IWC
-0.45% Dividend High Yield Equity PS, PEY
-0.47% MidCap S&P 400 iS, IJH
-0.57% WilderHill Clean Energy PS, PBW
-0.59% MidCap S&P 400 SPDRs, MDY
-0.59% Value SmallCap VIPERS, VBR
-0.60% Small Cap VIPERs, VB
-0.62% Growth MidCap 400 B, IJK
-0.63% Water Resources, PHO
-0.65% Value MidCap S&P 400 B, IJJ
-0.66% SmallCap Russell 2000, IWM
-0.68% Value SmallCap Russell 2000, IWN
-0.69% Growth SmallCap VIPERs, VBK
-0.73% Hong Kong Index, EWH
-0.80% Biotech SPDR, XBI
-0.82% Growth SmallCap R 2000, IWO
-1.00% Growth BARRA Small Cap 600, IJT
-1.08% SmallCap S&P 600, IJR
-1.14% Value SmallCap S&P 600 B, IJS
-1.67% Value SmallCap S&P 600, RZV