For June 11 , 2010

(Provided to you in advance of the Trading Session)

Summary: Neutral resistance is now within striking distance.

Our combined midterm analysis tells us that the neutral mid term channel that we have been watching is likely to solidify soon.  Specifically, midterm neutral resistance is likely to be tested soon, and that will confirm the channel again.  According to our combined midterm analysis, support levels have held thus far.  If those support levels continue to hold, and because the market has already begun to pull away, expect a test of resistance to follow.  Appropriately, our combined midterm analysis tells us to expect a test of midterm neutral resistance levels soon.  If/when that happens, treat resistance as inflection.

These Parameters are telling us to trade the Market as follows...

RESISTANCE PLANS: 

• If 2304 is tested first, these charts tell us to short with a downside target of 2141

•  However, if 2304 breaks higher these same Parameters are telling us to expect 2430

SUPPORT PLANS: 

• But, if 2141 is tested , these same Parameters tell us to buy the Market with a target of 2304.

• However, if 2141 breaks lower, these same Parameters are telling us to expect 2059

Our Automated Swing Trading Alerts Viewer will alert you to tests automatically.  Find the link to this viewer in our Strategies Tab in the Main Menu.

IMPORTANT: The rules of trading say that a test of support or resistance Parameters occur in the NASDAQ when the NASDAQ comes within 3 points of our trading Parameter (15 points for the DOW and 1.5 points for the S&P). When, for example, the Market comes within 3 points of a support level, and, according to rule, we look for a long position, we would refer to the Focus List at that exact time to find which stocks are best to trade. In order for our system to work efficiently for Market-timing purposes, we must look for trading ideas at the exact time the Market offers us trading signals as indicated from the Parameters above.