Utilities Stock Sector Relative Strength Ratio (XLU/SPY) rose above 2-month highs 5/18/10 and remains neutral.

Financial Stock Sector Relative Strength Ratio (XLF/SPY) fell below its 2-month lows 5/18/10 and remains neutral.

Materials Stock Sector Relative Strength Ratio (XLB/SPY) fell below 10-month lows on 5/18/10 and remains bearish.

Foreign Stocks ETF (EFA) Relative Strength Ratio (EFA/SPY) fell below 5-year lows on 5/18/10 and remains bearish.

Russell 1000 Value ETF Relative Strength Ratio (IWD/SPY) fell below its 50-day SMA on 5/18/10, thereby turning neutral.

Crude Oil nearest futures contract price fell below 5-month lows on 5/18/10 and remains neutral. Oil appears to be in a correction phase for the short term.

U.S. Treasury Bond nearest futures contract price appears to be regaining upside momentum for another run at its 12-month high of 124.16 set on 5/6/10.

The U.S. dollar nearest futures contract price moved further above 12-month highs on 5/18/10 and remains bullish.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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
5.18% , VRSN , VeriSign Inc
5.65% , FRX , FOREST LABS STK A
4.70% , FMCN , Focus Media, FMCN
1.59% , MYY , Short 100% MidCap 400, MYY
2.31% , HANS , Hansen Natural, HANS
4.57% , S , SPRINT NEXTEL
1.85% , WMT , WAL MART STORES
2.14% , IIH , Internet Infrastructure H, IIH
0.73% , IEF , Bond, 10 Year Treasury, IEF
1.08% , MCK , MCKESSON CORP
1.53% , TLT , Bond, 20+ Years Treasury, TLT
1.08% , SRCL , Stericycle, SRCL
1.51% , TAP , ADOLPH COORS STK B, TAP
2.02% , MRO , MARATHON OIL
1.50% , APC , ANADARKO PETRO
0.66% , SYY , SYSCO
1.47% , INTU , INTUIT
2.21% , BAX , BAXTER INTL
0.98% , ESRX , EXPRESS SCRIPTS
2.78% , SDS , Short 200% S&P 500 PS, SDS
1.08% , DOG , Short 100% Dow 30, DOG
0.70% , BDX , BECTON DICKINSON
0.64% , NCR , NCR
0.34% , AGG , Bond, Aggregate, AGG
1.00% , TLH , Bond 10-20 Year US Treas, TLH
2.31% , BMS , BEMIS
1.50% , FRE , FREDDIE MAC
0.21% , LNC , LINCOLN NATL
2.06% , DXD , Short 200% Dow 30 PS, DXD
0.30% , SRE , SEMPRA ENERGY
0.24% , CI , CIGNA
0.68% , ACV , Alberto-Culver Co.
0.24% , HAS , HASBRO
0.68% , HUM , HUMANA
0.50% , OXY , OCCIDENTAL
0.06% , DUK , DUKE ENERGY
0.17% , GVI , Bond Interm U.S. Gov, GVI
0.62% , CAH , CARDINAL HEALTH
1.39% , SH , Short 100% S&P 500, SH
0.43% , GENZ , GENZYME

Bearish Stocks: Falling Price and Rising Volume
Ranked by Price Change * Volume Change
% Price Change, Symbol, Name
-23.29% , ABK , AMBAC FINL GRP
-2.10% , EWQ , France Index, EWQ
-3.11% , EWO , Austria Index, EWO
-6.20% , A , AGILENT TECH
-3.75% , EWD , Sweden Index, EWD
-6.33% , SHLD , SEARS HOLDINGS
-4.82% , MTB , M&T BANK
-6.19% , STI , SUNTRUST BANKS
-4.88% , USB , US BANCORP
-1.61% , MTK , Technology MS sT, MTK
-4.55% , LVLT , LEVEL 3 COMMUNICATIONS
-1.68% , PIC , Insurance, PIC
-1.63% , IGM , Technology GS, IGM
-1.02% , IWZ , Growth LargeCap Russell 3000, IWZ
-2.74% , EWY , South Korea Index, EWY
-2.63% , KCE , Capital Markets KWB ST, KCE
-2.23% , EWK , Belgium Index, EWK
-3.47% , TJX , TJX
-3.58% , PMCS , PMC SIERRA
-1.51% , IOO , Global 100, IOO
-4.24% , TER , TERADYNE
-2.30% , EFG , Growth EAFE MSCI, EFG
-2.75% , PSI , Semiconductors, PSI
-4.10% , AMP , Ameriprise Financial Inc.
-1.13% , TBH , Telebras HOLDRS, TBH
-1.27% , EWP , Spain Index, EWP
-5.88% , MTG , MGIC INVESTMENT
-2.81% , BA , BOEING
-5.31% , HBAN , HUNTINGTON
-4.32% , GT , GOODYEAR TIRE
-0.63% , VOX , Telecom Services VIPERs, VOX
-6.09% , CTB , COOPER TIRE
-3.53% , RKH , Bank Regional H, RKH
-2.80% , PFG , PRINCIPAL FINL
-3.30% , PNC , PNC FINL SVC
-0.86% , IDX , Indonesia MV, IDX
-2.88% , FEU , Value LargeCap Euro STOXX 50 DJ, FEU
-1.25% , NY , Value LargeCap NYSE 100 iS, NY
-2.53% , ININ , Interactive Intelligence ININ
-1.57% , IWW , Value LargeCap Russell 3000, IWW

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 below its 50-day SMA on 5/14/10 and is now neutral. Support 31.03. Resistance 34.39, 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 below its 50-day SMA on 5/14/10 and is now neutral. Support 29.60, 28.44, and 28.15. Resistance 32.41, 33.46, 34.24, 34.50, and 35.00.

Consumer Staples (XLP) Neutral, Market Weight. The Relative Strength Ratio (XLP/SPY) crossed above its 200-day SMA on 5/17/10 and remains neutral. Absolute price of XLP continues to trade between 50-day and 200-day SMAs and remains neutral. Support 26.99, 26.53, and 24.95. Resistance 27.83, 27.95, 28.20, 28.75, 29.29 and 30.29.

Technology (XLK) Neutral, Market Weight. The Relative Strength Ratio (XLK/SPY) crossed back above its 50-day SMA on 5/17/10 and remains neutral. Absolute price fell back below its 50-day SMA on 5/13/10 and remains neutral. Support 21.25 and 20.64. Resistance 23.27, 24.16, 24.68, and 25.69.

Financial (XLF) Neutral, Market Weight. The Relative Strength Ratio (XLF/SPY) fell below its 2-month lows 5/18/10 and remains neutral. Absolute price of XLF price fell below its 50-day SMA on 5/13/10 and remains neutral. Support 14.87 and 14.56. Resistance 16.13, 16.90, 17.12, 17.16, and 17.87.

Utilities (XLU) Neutral, Market Weight. The Relative Strength Ratio (XLU/SPY) rose above 2-month highs 5/18/10 and remains neutral. Absolute price of XLU fell back below its 200-day SMA on 5/19/10 and remains neutral. Support 29.50, 28.68, and 25.76. Resistance 30.59, 30.91, 31.64 and 32.08.

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 below its 200-day SMA on 5/14/10 and remains neutral. Support 29.34, 28.53, and 27.96. Resistance 30.83, 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 below 10-month lows on 5/18/10 and remains bearish. Absolute price of XLB crossed below the 200-day SMA on 5/14/10 and remains neutral. Support 30.66 and 29.48. Resistance 33.06, 35.47, and 37.56.

Energy (XLE) Neutral, Market Weight. The Relative Strength Ratio (XLE/SPY) fell below 1-month lows on 5/17/10 and remains bearish. Absolute price of XLE fell below its 200-day SMA on 5/14/10 and remains neutral. Support 54.29, 52.29, and 51.34. Resistance 58.11, 59.84, 62.30, 62.73, 69.95, and 78.10.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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 its 200-day SMA on 5/14/10 and remains neutral.

Foreign Stocks ETF (EFA) Relative Strength Ratio (EFA/SPY) fell below 5-year lows on 5/18/10 and remains bearish. Absolute price of EFA fell below 10-month lows on 5/6/10 and is below both 50- and 200-day simple moving averages.

NASDAQ Composite/S&P 500 Relative Strength Ratio crossed above its 50-day simple moving average on 5/12/10 thereby turning bullish again. Absolute price of the NASDAQ price fell back below its 50-day SMA on 5/13/10 and remains neutral.

Growth Stock/Value Stock Relative Strength Ratio (IWF/IWD) has firmed since falling to a 5-month low on 4/14/10 and is now neutral. Absolute price of IWF lost upside momentum since 4/26/10 and remains neutral.

Russell 1000 Value ETF Relative Strength Ratio (IWD/SPY) fell below its 50-day SMA on 5/18/10, thereby turning neutral. Absolute price of IWD fell below its 50-day SMA on 5/13/10 and remains neutral.

The S&P 500 Equally Weighted ETF Relative Strength Ratio (RSP/SPY) remains bullish. Absolute price of RSP lost upside momentum since 4/26/10 and remains neutral.

The Largest Cap S&P 100/S&P 500 Relative Strength Ratio (OEX/SPX) fell below the lows of the previous 22 months on 5/12/10 and remains bearish. Absolute price of OEX continues to trade between 50-day and 200-day SMAs and remains neutral.

The Small Cap Russell 2000 Index/Large Cap Relative Strength Ratio (IWM/SPY) remains bullish. Absolute price of IWM fell below its 50-day SMA on 5/14/10 and is now neutral.

The S&P MidCap 400/Large Cap Relative Strength Ratio (MDY/SPY) continued to move up on 5/13/10 and remains bullish. Absolute price of MDY lost upside momentum since 4/26/10 and remains neutral.

Crude Oil nearest futures contract price fell below 5-month lows on 5/18/10 and remains neutral. Oil appears to be in a correction phase for the short term. Longer term, Oil remains bullish. Support 68.59 and 65.05. Resistance 78.81, 81.29, 87.15, 90.51, 98.65, and 102.84.

Gold nearest futures contract price rose above previous all-time highs on 5/12/10, thereby confirming its preexisting bullish trend for the long term. Support 1184.4, 1156.2, 1124.3, 1084.8, 1045.2, 1026.9 and 989.3. Resistance: none.

Gold Mining Stocks ETF (GDX) Relative Strength Ratio (relative to the Gold bullion ETF, GDX/GLD) remains neutral. Absolute price rose above 5-month highs on 5/10/10 and remains bullish.

Silver/Gold Ratio turned bearish on 5/17/10 when it crossed below both 50- and 200-day SMAs, with the 50-day SMA below the 200-day SMA.

Copper nearest futures price fell below the lows of the previous 3 months on 5/17/10, 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 2.8525 and 2.811. Resistance 3.2675, 3.3225, 3.795 and 4.27.

U.S. Treasury Bond nearest futures contract price jumped up to a new 12-month high of 124.16 on 5/6/10 and appears to be regaining upside momentum for another run at it. Support 119.26, 118.24, 118.12, 115.15, 114.06. 113.04 and 112.15. Resistance 124.16, and 125.03.

Junk/Investment-Grade Corporate Bonds Relative Strength Ratio (JNK/LQD) lost upside momentum since 4/15/10 and remains neutral.

U.S. Treasury Inflation Protected / U.S. Treasury 7-10 Year Relative Strength Ratio (TIP/IEF) fell below 50-day SMA on 5/14/10 but remains above its 200-day SMA and, therefore, is neutral. This implies that investors are choosing somewhat less inflation protection. Absolute price of TIP also remains bullish.

The U.S. dollar nearest futures contract price moved further above 12-month highs on 5/18/10 and remains bullish. Support 85.46, 83.07, 81.74, 80.14, 79.73, 79.61, 78.83, 78.20, 76.74 and 75.90. Resistance 89.71 and 92.53.

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 47.2% Bulls versus 24.7% Bears as of 5/12/10, according to the weekly Investors Intelligence survey of stock market newsletter advisors. The Bull/Bear ratio fell to 1.91, down from 2.99 the previous week. The current Bull/Bear ratio has fallen substantially from 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 42.15 on 5/7/10. 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 42.03 on 5/7/10. 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 .059 on 5/7/10, a low level that indicates bearish sentiment. 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 rose to 0.80 on 5/7/10, a high level that indicates moderately bearish sentiment. 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 continues to trade between 50-day and 200-day SMAs and remains neutral. The S&P fell more than 8% from its peak on 4/23/10 at 1217.28 to its low on 5/7/10 at 1,110.88, based on closing prices. Minor corrections of between 5% and 10% are typical in bull markets. Support 1114.96, 1094.15, 1065.79, 1044.50, 1029.38, 1019.95, 1012.42, and 1008.55. Resistance 1173.57, 1219.80, 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
1173.57, high of 5/13/2010

S&P 500 Cash Index Potential Support
1114.96, low of 5/17/2010
1094.15, low of 5/7/2010
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
1012.42, Gann 37.5% of 2009-2010 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
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

1.53% Bond, 20+ Years Treasury, TLT
0.81% Agriculture DB PS, DBA
0.73% Bond, 10 Year Treasury, IEF
0.52% Bond, TIPS, TIP
0.34% Bond, Aggregate, AGG
0.32% Bond, Corp, LQD
0.22% Silver Trust iS, SLV
0.16% Bond Muni ATM-Free S&P iS, MUB
0.11% Gold Shares S.T., GLD
0.11% Bond, 1-3 Year Treasury, SHY
-0.14% Commodity Tracking, DBC
-0.15% Bond EmrgMkt JPM iS, EMB
-0.21% Bond, High-Yield Corporate, HYG
-0.56% Financial Preferred, PGF
-0.58% Consumer Staples SPDR, XLP
-0.63% China 25 iS, FXI
-0.66% Thailand MSCI iS, THD
-0.74% Preferred Stock iS, PFF
-0.75% Telecom DJ US, IYZ
-0.76% Bond Ex-US Treas, BWX
-0.77% Energy SPDR, XLE
-0.78% Singapore Index, EWS
-0.80% Health Care SPDR, XLV
-0.81% Energy DJ, IYE
-0.83% Dividend Appreciation Vipers, VIG
-0.83% Biotech SPDR, XBI
-0.84% Chile MSCI iS, ECH
-0.85% Canada Index, EWC
-0.86% Dividend SPDR, SDY
-0.86% Indonesia MV, IDX
-0.89% Natural Resource iS GS, IGE
-0.91% Energy VIPERs, VDE
-0.97% Utilities SPDR, XLU
-1.01% Hong Kong Index, EWH
-1.05% Growth 1000 Russell, IWF
-1.06% DIAMONDS (DJIA), DIA
-1.10% Energy Global, IXC
-1.10% Utilities VIPERs, VPU
-1.15% Dividend DJ Select, DVY
-1.16% Value LargeCap Dynamic PS, PWV
-1.17% Growth S&P 500/BARRA, IVW
-1.19% Dividend High Yield Equity PS, PEY
-1.20% Dividend International, PID
-1.21% Oil, Crude, U.S. Oil Fund, USO
-1.24% Growth VIPERs, VUG
-1.25% Industrial SPDR, XLI
-1.27% Spain Index, EWP
-1.29% China LargeCap Growth G D H USX PS, PGJ
-1.30% LargeCap Blend S&P=Weight R, RSP
-1.30% S&P 500 iS LargeCap Blend, IVV
-1.33% LargeCap VIPERs, VV
-1.35% Malaysia Index, EWM
-1.36% S&P 500 SPDRs LargeCap Blend, SPY
-1.36% MidCap S&P 400 SPDRs, MDY
-1.38% Growth LargeCap NASDAQ 100, QQQQ
-1.38% LargeCap 1000 R, IWB
-1.38% Transportation Av DJ, IYT
-1.39% LargeCap Blend S&P 100, OEF
-1.39% LargeCap Blend Russell 3000, IWV
-1.40% Technology DJ US, IYW
-1.40% MidCap S&P 400 iS, IJH
-1.41% Blend Total Market VIPERs, VTI
-1.42% Basic Materials DJ US, IYM
-1.46% Growth SmallCap R 2000, IWO
-1.47% Value VIPERs, VTV
-1.48% Germany Index, EWG
-1.49% Growth MidCap 400 B, IJK
-1.49% India Earnings WTree, EPI
-1.51% Technology SPDR, XLK
-1.51% Global 100, IOO
-1.52% Growth MidCap Russell, IWP
-1.52% Value MidCap S&P 400 B, IJJ
-1.54% Value S&P 500 B, IVE
-1.54% Info Tech VIPERs, VGT
-1.59% Small Cap VIPERs, VB
-1.61% Value 1000 Russell, IWD
-1.63% Microcap Russell, IWC
-1.65% Growth SmallCap VIPERs, VBK
-1.66% Russia MV, RSX
-1.67% MidCap Russell, IWR
-1.71% Metals & Mining SPDR, XME
-1.71% Materials SPDR, XLB
-1.72% Japan Index, EWJ
-1.73% Homebuilders SPDR, XHB
-1.73% India PS, PIN
-1.76% Value MidCap Russell, IWS
-1.79% Water Resources, PHO
-1.85% Growth BARRA Small Cap 600, IJT
-1.86% Consumer Discretionary SPDR, XLY
-1.87% Emerging 50 BLDRS, ADRE
-1.88% Value SmallCap VIPERS, VBR
-1.90% Europe 350 S&P Index, IEV
-1.91% Taiwan Index, EWT
-1.92% Networking, IGN
-1.92% SmallCap Russell 2000, IWM
-1.93% Global ex US ACWI iS, ACWX
-1.94% Value EAFE MSCI, EFV
-1.96% Value SmallCap S&P 600 B, IJS
-1.97% SmallCap S&P 600, IJR
-1.98% Value SmallCap Russell 2000, IWN
-2.04% South Africa Index, EZA
-2.05% Latin Am 40, ILF
-2.10% Emerging Markets, EEM
-2.10% France Index, EWQ
-2.10% Pacific ex-Japan, EPP
-2.10% Pacific VIPERs, VPL
-2.14% EMU Europe Index, EZU
-2.15% Emerging VIPERs, VWO
-2.16% EAFE Index, EFA
-2.18% Turkey MSCI iS, TUR
-2.23% Belgium Index, EWK
-2.23% European VIPERs, VGK
-2.26% Mexico Index, EWW
-2.30% Growth EAFE MSCI, EFG
-2.37% Italy Index, EWI
-2.42% United Kingdom Index, EWU
-2.50% Realty Cohen & Steers, ICF
-2.53% REIT VIPERs, VNQ
-2.55% Real Estate US DJ, IYR
-2.60% REIT Wilshire, RWR
-2.63% Capital Markets KWB ST, KCE
-2.67% Australia Index, EWA
-2.69% Financials VIPERs, VFH
-2.74% South Korea Index, EWY
-2.75% Semiconductor iS GS, IGW
-2.83% Netherlands Index, EWN
-2.86% Financial SPDR, XLF
-2.90% Financial DJ US, IYF
-3.01% Switzerland Index, EWL
-3.02% WilderHill Clean Energy PS, PBW
-3.09% Brazil Index, EWZ
-3.09% Small Cap EAFE MSCI iS, SCZ
-3.11% Austria Index, EWO
-3.18% Financial Services DJ, IYG
-3.18% Semiconductor SPDR, XSD
-3.69% Value SmallCap S&P 600, RZV
-3.75% Sweden Index, EWD