“We don’t know if the sudden drop was caused by an erroneous trade, or by a technology malfunction, or if the stock traded away from the NYSE and there were simply no bids,” wrote Bob Pisani on cnbc.com.

S&P 500 Composite (SPX) absolute price fell below 2-month lows on 5/6/10 and remains neutral. The S&P is down more than 7% since its peak on 4/23/10 at 1217.28, based on closing prices. Minor corrections of between 5% and 10% are typical in bull markets.

Most stocks and commodities gave bearish signals. See details below.

Gold rose above the highs of the previous 6 months on 5/6/10, thereby confirming its preexisting bullish trend for the intermediate-term.

The U.S. dollar moved above 12-month highs on 5/6/10, thereby confirming its preexisting bullish 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
1.51% , FISV , FISERV
6.40% , DXD , Short 200% Dow 30 PS, DXD
6.53% , QID , Short 200% QQQ PS, QID
6.54% , MZZ , Short 200% MidCap 400 PS, MZZ
6.62% , SDS , Short 200% S&P 500 PS, SDS
2.91% , IAU , Gold COMEX iS, IAU
3.07% , TDC , Teradata Corporation, TDC
2.95% , GLD , Gold Shares S.T., GLD
3.32% , SH , Short 100% S&P 500, SH
3.30% , PSQ , Short 100% QQQ, PSQ
3.04% , MYY , Short 100% MidCap 400, MYY
3.09% , TLT , Bond, 20+ Years Treasury, TLT
3.20% , DOG , Short 100% Dow 30, DOG
1.72% , SYMC , SYMANTEC
2.09% , NEM , NEWMONT MINING
1.36% , SNV , SYNOVUS
2.91% , CI , CIGNA
1.80% , CTB , COOPER TIRE
1.10% , IEF , Bond, 10 Year Treasury, IEF
0.77% , BAX , BAXTER INTL
0.26% , FPL , FPL GROUP INC
0.14% , AGG , Bond, Aggregate, AGG
0.45% , TIP , Bond, TIPS, TIP
0.22% , SHY , Bond, 1-3 Year Treasury, SHY

Bearish Stocks: Falling Price and Rising Volume
Ranked by Price Change * Volume Change
% Price Change, Symbol, Name
-8.27% , PZJ , SmallCap PS Zacks, PZJ
-2.81% , ELV , Value Large Cap DJ, ELV
-2.69% , HHH , Internet H, HHH
-4.55% , DGT , Global Titans, DGT
-4.00% , PIC , Insurance, PIC
-3.49% , RPG , Growth S&P 500, RPG
-3.40% , PWO , OTC Dynamic PS, PWO
-8.15% , EWI , Italy Index, EWI
-4.62% , PBE , Biotech & Genome, PBE
-2.51% , TMW , Wilshire 5000 ST TM, TMW
-3.08% , JKG , MidCap Blend Core iS M, JKG
-2.51% , UTH , Utilities H, UTH
-4.60% , IYG , Financial Services DJ, IYG
-15.23% , LIZ , LIZ CLAIRBORNE
-3.24% , PJP , Pharmaceuticals, PJP
-10.02% , LAMR , Lamar Advertising Company
-4.46% , IXP , Telecommunications Global, IXP
-13.98% , DDS , DILLARD STK A
-3.62% , PWV , Value LargeCap Dynamic PS, PWV
-3.24% , PWC , LargeCap Blend Dynamic PS, PWC
-3.23% , JKE , Growth LargeCap iS M, JKE
-2.69% , PXN , Nanotech Lux, PXN
-11.19% , LVLT , LEVEL 3 COMMUNICATIONS
-4.88% , NY , Value LargeCap NYSE 100 iS, NY
-2.92% , IWZ , Growth LargeCap Russell 3000, IWZ
-2.56% , VDC , Consumer Staples VIPERs, VDC
-3.31% , JKD , LargeCap Blend Core iS M, JKD
-3.69% , PWY , Value SmallCap Dynamic PS, PWY
-2.77% , SCZ , Small Cap EAFE MSCI iS, SCZ
-3.78% , ITF , Japan LargeCap Blend TOPIX 150, ITF
-5.65% , SPLS , STAPLES
-3.51% , NYC , LargeCap Blend NYSE Composite iS, NYC
-3.83% , PMR , Retail, PMR
-4.12% , PXQ , Networking, PXQ
-2.98% , PWP , Value MidCap Dynamic PS, PWP
-4.05% , JKI , Value MidCap iS M, JKI
-5.25% , IXC , Energy Global, IXC
-6.01% , KWT , Solar Energy MV, KWT
-5.49% , TIF , TIFFANY
-2.91% , PUI , Utilities, PUI

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

Consumer Discretionary (XLY) Bullish, Overweight. The Relative Strength Ratio (XLY/SPY) rose above 12-year highs on 4/26/10 and remains bullish. Absolute price of XLY fell to a 2-month low and fell below the 50-day SMA on 5/6/10. So, price trend is now neutral. Support 31.03, 31.66, 30.99, 29.90, 29.25, 28.66, 28.21 and 26.62. Resistance and 36.13, 38.25 and 39.09.

Industrial (XLI) Bullish, Overweight. The Relative Strength Ratio (XLI/SPY) rose above 18-month highs on 4/29/10 and remains bullish. Absolute price of XLI fell to a 2-month low and fell below the 50-day SMA on 5/6/10. So, price trend is now neutral. Support 28.44 and 28.15. Resistance 33.46, 34.24, 34.50, and 35.00.

Technology (XLK) Neutral, Market Weight. The Relative Strength Ratio (XLK/SPY) gave a bearish signal when it fell below 2-week lows and both 50- and 200-day simple moving averages on 4/30/10. Absolute price fell to a 3-month low and tested the 200-day SMA on 5/6/10. Price trend is now neutral. Support 22.66, 22.52, 21.30, 20.71, 20.46 and 20.09. Resistance 24.16, 24.68, and 25.69.

Consumer Staples (XLP) Neutral, Market Weight. The Relative Strength Ratio (XLP/SPY) rose above the 50-day SMA on 5/6/10 and is now neutral. Absolute price of XLP fell to an 8-month low and tested the 200-day SMA on 5/6/10. Price trend remains neutral. Support 24.95, 24.48, 24.02, and 22.63. Resistance 28.75, 29.29 and 30.29.

Financial (XLF) Neutral, Market Weight. The Relative Strength Ratio (XLF/SPY) broke below 6-week lows on 4/27/10 and remains neutral. Absolute price of XLF fell to a 2-month low and tested the 200-day SMA on 5/6/10. Price trend remains neutral. Support 15.52, 15.37, and 15.12. Resistance 16.90, 17.12, 17.16, and 17.87.

Health Care (XLV) Neutral, Market Weight. The Relative Strength Ratio (XLV/SPY) fell below 18-month lows on 4/26/10 and remains bearish. Absolute price of XLV fell to an 8-month low and fell below the 200-day SMA on 5/6/10. Price trend remains neutral. Support 28.53 and 27.96. Resistance 32.05, 32.18, 32.42, 32.69, 33.16, 33.37 and 33.74.

Materials (XLB) Neutral, Market Weight. The Relative Strength Ratio (XLB/SPY) fell to its lowest level in 9 months on 5/5/10 and remains bearish. Absolute price of XLB fell to a 3-month low and fell below the 200-day SMA on 5/6/10. Price trend remains neutral. Support 29.48, and 28.95. Resistance 35.47 and 37.56.

Energy (XLE) Neutral, Market Weight. The Relative Strength Ratio (XLE/SPY) fell below its 50-day simple moving average on 5/5/10, and so it is bearish again. Absolute price of XLE fell to a 7-month low and fell below the 200-day SMA on 5/6/10. Price trend remains neutral. Support 52.29 and 51.34. Resistance 62.30, 62.73, 69.95, and 78.10.

Utilities (XLU) Neutral, Market Weight. The Relative Strength Ratio (XLU/SPY) rose above 6-week highs on 5/4/10, thereby turning neutral. Absolute price of XLU rose above 3-month highs on 5/3/10 and remains bullish. Support 25.76, 25.52, and 24.96. Resistance 31.30, 31.64 and 32.08.
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Emerging Markets Stocks ETF (EEM) Relative Strength Ratio (EEM/SPY) fell to a 12-month low on 5/6/10. EEM/SPY trend turned bearish on 4/16/10, according to strict moving average analysis. Absolute price of EEM fell below 3-month lows on 5/6/10 and is bearishly below both 50- and 200-day simple moving averages.

Foreign Stocks ETF (EFA) Relative Strength Ratio (EFA/SPY) fell below 5-year lows on 5/6/10 and remains bearish. Absolute price of EFA fell below 10-month lows on 5/6/10 and is bearishly below both 50- and 200-day simple moving averages.

NASDAQ Composite/S&P 500 Relative Strength Ratio fell below its 50-day simple moving average on 5/6/10 rose and thereby turned neutral. Absolute price of the NASDAQ fell below 2-month lows on 5/6/10 and remains neutral.

Growth Stock/Value Stock Relative Strength Ratio (IWF/IWD) fell to a 5-month low on 4/14/10 but has stabilized somewhat since. IWF/IWD remains below both 50- and 200-day simple moving averages. Absolute price of IWF fell below 8-week lows on 5/6/10 and remains neutral.

Russell 1000 Value ETF Relative Strength Ratio (IWD/SPY) rose above 7-month highs on 5/3/10 and remains bullish. Absolute price of IWD closed below 8-week lows on 5/6/10.

The S&P 500 Equally Weighted ETF Relative Strength Ratio (RSP/SPY) rose above previous 6-year highs on 4/26/10 and remains bullish. Absolute price of RSP fell below 2-month lows and fell below its 50-day SMA on 5/6/10, thereby turning neutral.

The Largest Cap S&P 100/S&P 500 Relative Strength Ratio (OEX/SPX) fell below the lows of the previous 21 months on 4/26/10 and remains bearish. Absolute price of OEX fell below 2-month lows on 5/6/10 and remains neutral.

The Small Cap Russell 2000 Index/Large Cap Relative Strength Ratio (IWM/SPY) rose above 17-month highs on 4/29/10 and remains bullish. Absolute price of IWM fell below 2-month lows and fell below its 50-day SMA on 5/6/10, thereby turning neutral.

The S&P MidCap 400/Large Cap Relative Strength Ratio (MDY/SPY) rose above 15-year highs on 4/26/10 and remains bullish. Absolute price of MDY fell below 2-month lows and fell below its 50-day SMA on 5/6/10, thereby turning neutral.

Crude Oil nearest futures contract price fell below 2-month lows on 5/6/10 and remains neutral. Oil appears to be in a correction phase for the short term. Longer term, Oil remains bullish. Support 74.58, 72.60, 69.50, 68.59 and 65.05. Resistance 87.15, 90.51, 98.65, and 102.84.

Gold nearest futures contract price rose above the highs of the previous 6 months on 5/6/10, thereby confirming its preexisting bullish trend for the intermediate-term. Longer term, Gold remains bullish. Support 1160, 1124.3, 1084.8, 1045.2, 1026.9 and 989.3. Resistance 1226.4.

Gold Mining Stocks ETF (GDX) Relative Strength Ratio (relative to the Gold bullion ETF, GDX/GLD) turned neutral on 5/5/10 when it fell below 50- and 200- day SMAs. Absolute price rose above 3-month highs on 4/30/10 and remains bullish.

Silver/Gold Ratio fell further below 2-month lows on 5/6/10, fell further below 50- and 200- day SMAs, and remains bearish.

Copper nearest futures price fell below the lows of the previous 3 months on 5/5/10, again confirming a bearish trend for the short-term. Copper entered a correction phase since peaking at 3.68 on 4/12/10. Longer term, Copper remains bullish. Strength in Copper suggests renewed hope about prospects for the world economy, while weakness suggests doubts. Support 3.29, 3.1505, 3.034, and 2.811. Resistance 3.795 and 4.27.

U.S. Treasury Bond nearest futures contract price jumped up to a new 12-month high on 5/6/10. Support 118.24, 118.12, 115.15, 114.06. 113.04 and 112.15. Resistance 123.18, 123.25, and 124.11.

Junk/Investment-Grade Corporate Bonds Relative Strength Ratio (JNK/LQD) fell further below its 200-day SMA on 5/6/10 but remains neutral because the 50-day SMA is still above the 200-day SMA.

U.S. Treasury Inflation Protected / U.S. Treasury 7-10 Year Relative Strength Ratio (TIP/IEF) fell below its 500-day SMA on 5/6/10, thereby turning bearish. This means investors prefer less inflation protection. Absolute price of TIP rose above 22-month highs on 5/6/10 and remains bullish.

The U.S. dollar nearest futures contract price moved above 12-month highs on 5/6/10, thereby confirming its preexisting bullish trend. Support 81.74, 80.14, 79.73, 79.61, 78.83, 78.20, 76.74 and 75.90. Resistance 85.46, 87.22 and 89.71.

The Art of Contrary Thinking: The various surveys of investor sentiment are best considered as background factors. The majority of investors can be right for a long time before a major trend finally changes course. The Art of Contrary Thinking is best used together with more precise market timing tools.

Advisory Service Sentiment: There were 56.0% Bulls versus 18.7% Bears as of 5/5/10, according to the weekly Investors Intelligence survey of stock market newsletter advisors. The Bull/Bear ratio rose to 2.99, down from 3.00 the previous week. The current Bull/Bear ratio is near its 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 1.51, and the mean is 1.57.

VIX Fear Index rose to a 13-month high of 40.71 on 5/6/10. A high and rising VIX suggests increasing bearish sentiment. 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.

VXN Fear Index rose to a 13-month high of 38.63 on 5/6/10. A high and rising VIX suggests increasing bearish sentiment. VXN measures NASDAQ Volatility using a method comparable to that used for VIX.

ISEE Call/Put Ratio fell to 0.65 on 5/5/10, a low level that indicates extreme bearish sentiment, which might be taken as a sign to be alert. Its 2-year mean is 1.20, and its typical range is 0.69 to 1.71, which represents two standard deviations from the mean.

CBOE Put/Call Ratio fell to 0.32 on 4/14/10, a low level that indicates extreme bullish sentiment, which might be taken as a sign to be alert. The 2-year mean is 0.70, and the typical range is 0.44 to 0.96, which represents two standard deviations from the mean.

The Dow Theory again confirmed a Bullish Major Trend on 4/26/10, when both the Dow-Jones Industrial Average and the Dow-Jones Transportation Average closed above their closing price highs of the previous 18 months. The Dow Theory 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. That 7/23/09 bullish signal reversed the previous bearish signal: the two Averages signaled a Primary Tide Bear Market on 11/21/07, when both Averages closed below their closing price lows of August 2007.

S&P 500 Composite (SPX) absolute price fell below 2-month lows on 5/6/10 and remains neutral. The S&P is down more than 7% since its peak on 4/23/10 at 1217.28, based on closing prices. Minor corrections of between 5% and 10% are typical in bull markets. Support 1065.79, 1044.50, 1029.38, and 1019.95. Resistance 1220.03 and 1228.74.

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
1220.03, high of 9/25/2008
1219.80, high of 4/26/2010

S&P 500 Cash Index Potential Support
1065.79, low of 5/6/2010
1044.50, low of 2/5/2010
1029.38, low of 11/2/2009
1019.95, low of 10/2/2009
991.97, low of 9/2/2009
978.51, low of 8/17/2009
1012.42, Gann 37.5% of 2009-2010 range
1008.55, Fibonacci 38.2% of 2009-2010 range
956.23, high of 6/11/2009
943.29, Gann 50.0% of 2009-2010 range
869.32, low of 7/8/2009
878.04, Fibonacci 61.8% 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

3.09% Bond, 20+ Years Treasury, TLT
2.95% Gold Shares S.T., GLD
1.23% Silver Trust iS, SLV
1.10% Bond, 10 Year Treasury, IEF
0.45% Bond, TIPS, TIP
0.22% Bond, 1-3 Year Treasury, SHY
0.14% Bond, Aggregate, AGG
0.04% Bond Muni ATM-Free S&P iS, MUB
-0.64% Japan Index, EWJ
-1.20% Bond Ex-US Treas, BWX
-1.57% Metals & Mining SPDR, XME
-1.65% Bond, Corp, LQD
-1.70% Switzerland Index, EWL
-1.97% Commodity Tracking, DBC
-2.07% Agriculture DB PS, DBA
-2.12% Thailand MSCI iS, THD
-2.31% Malaysia Index, EWM
-2.49% Bond, High-Yield Corporate, HYG
-2.50% Consumer Staples SPDR, XLP
-2.51% Pacific VIPERs, VPL
-2.55% Dividend Appreciation Vipers, VIG
-2.61% Utilities VIPERs, VPU
-2.68% Health Care SPDR, XLV
-2.68% Chile MSCI iS, ECH
-2.76% Utilities SPDR, XLU
-2.76% Canada Index, EWC
-2.77% Small Cap EAFE MSCI iS, SCZ
-2.89% Dividend High Yield Equity PS, PEY
-2.98% Growth 1000 Russell, IWF
-2.99% Telecom DJ US, IYZ
-3.01% Technology SPDR, XLK
-3.02% Basic Materials DJ US, IYM
-3.08% Dividend SPDR, SDY
-3.08% Growth VIPERs, VUG
-3.09% Dividend DJ Select, DVY
-3.11% Growth S&P 500/BARRA, IVW
-3.13% Water Resources, PHO
-3.14% Dividend International, PID
-3.17% Growth MidCap Russell, IWP
-3.24% LargeCap VIPERs, VV
-3.25% DIAMONDS (DJIA), DIA
-3.27% MidCap Russell, IWR
-3.28% Growth BARRA Small Cap 600, IJT
-3.29% Materials SPDR, XLB
-3.29% Hong Kong Index, EWH
-3.30% LargeCap Blend Russell 3000, IWV
-3.31% Industrial SPDR, XLI
-3.32% S&P 500 SPDRs LargeCap Blend, SPY
-3.32% LargeCap Blend S&P 100, OEF
-3.33% MidCap S&P 400 SPDRs, MDY
-3.33% Transportation Av DJ, IYT
-3.33% Singapore Index, EWS
-3.34% Growth LargeCap NASDAQ 100, QQQQ
-3.34% Technology DJ US, IYW
-3.35% LargeCap 1000 R, IWB
-3.35% Growth MidCap 400 B, IJK
-3.35% China 25 iS, FXI
-3.37% Blend Total Market VIPERs, VTI
-3.39% Natural Resource iS GS, IGE
-3.39% Emerging 50 BLDRS, ADRE
-3.42% Energy SPDR, XLE
-3.43% Value MidCap Russell, IWS
-3.44% S&P 500 iS LargeCap Blend, IVV
-3.44% MidCap S&P 400 iS, IJH
-3.44% Mexico Index, EWW
-3.46% SmallCap S&P 600, IJR
-3.47% Semiconductor SPDR, XSD
-3.47% Value 1000 Russell, IWD
-3.50% Growth SmallCap R 2000, IWO
-3.51% Value MidCap S&P 400 B, IJJ
-3.52% Value VIPERs, VTV
-3.52% Oil, Crude, U.S. Oil Fund, USO
-3.54% Capital Markets KWB ST, KCE
-3.56% Consumer Discretionary SPDR, XLY
-3.57% Info Tech VIPERs, VGT
-3.58% Value S&P 500 B, IVE
-3.61% India Earnings WTree, EPI
-3.62% Value LargeCap Dynamic PS, PWV
-3.63% Semiconductor iS GS, IGW
-3.63% Energy DJ, IYE
-3.64% Germany Index, EWG
-3.65% Value SmallCap VIPERS, VBR
-3.66% Emerging VIPERs, VWO
-3.67% LargeCap Blend S&P=Weight R, RSP
-3.67% Energy VIPERs, VDE
-3.70% Microcap Russell, IWC
-3.72% Value SmallCap S&P 600 B, IJS
-3.75% SmallCap Russell 2000, IWM
-3.77% Realty Cohen & Steers, ICF
-3.81% Growth SmallCap VIPERs, VBK
-3.81% Homebuilders SPDR, XHB
-3.83% Global ex US ACWI iS, ACWX
-3.83% Small Cap VIPERs, VB
-3.88% Taiwan Index, EWT
-3.89% Latin Am 40, ILF
-3.92% Indonesia MV, IDX
-3.92% Value SmallCap Russell 2000, IWN
-3.99% South Korea Index, EWY
-4.02% Real Estate US DJ, IYR
-4.09% Emerging Markets, EEM
-4.10% South Africa Index, EZA
-4.11% REIT VIPERs, VNQ
-4.13% Financials VIPERs, VFH
-4.15% Biotech SPDR, XBI
-4.17% REIT Wilshire, RWR
-4.19% Growth EAFE MSCI, EFG
-4.22% Financial SPDR, XLF
-4.27% Brazil Index, EWZ
-4.28% Financial DJ US, IYF
-4.37% Value SmallCap S&P 600, RZV
-4.44% Bond EmrgMkt JPM iS, EMB
-4.46% EAFE Index, EFA
-4.48% China LargeCap Growth G D H USX PS, PGJ
-4.51% Global 100, IOO
-4.53% India PS, PIN
-4.60% Financial Services DJ, IYG
-4.66% Belgium Index, EWK
-4.71% United Kingdom Index, EWU
-4.88% Value EAFE MSCI, EFV
-4.95% Networking, IGN
-5.05% Netherlands Index, EWN
-5.11% WilderHill Clean Energy PS, PBW
-5.25% Energy Global, IXC
-5.34% European VIPERs, VGK
-5.34% Europe 350 S&P Index, IEV
-5.41% Russia MV, RSX
-5.78% EMU Europe Index, EZU
-5.85% Financial Preferred, PGF
-6.07% Pacific ex-Japan, EPP
-6.08% Sweden Index, EWD
-6.24% France Index, EWQ
-6.32% Preferred Stock iS, PFF
-6.46% Austria Index, EWO
-6.50% Turkey MSCI iS, TUR
-6.68% Australia Index, EWA
-6.86% Spain Index, EWP
-8.15% Italy Index, EWI