Richard Suttmeier is the Chief Market Strategist at www.ValuEngine.com.

ValuEngine is a fundamentally-based quant research firm in Newtown, PA. ValuEngine

covers over 7,000 stocks every day.

A variety of newsletters and portfolios containing Suttmeier's detailed research, stock picks,
and commentary can be found http://www.valuengine.com/nl/mainnl

To unsubscribe from this free email newsletter list, please click

http://www.valuengine.com/pub/Unsubscribe?

May 23, 2011 – Confirming Directional Changes for the US Capital Markets
US Treasury yields remain low on a flight to quality. Gold needs a weekly close below $1485.7
to confirm a down trend. Crude oil has confirmed a down trend with a weekly close below
$103.35. The euro has confirmed a down trend with a weekly close below 1.4254. The Dow
Industrial Average needs a weekly close below 12,473 to confirm a down trend.
10-Year Note – (3.149) Monthly, annual and quarterly value levels are 3.757, 3.796 and 4.016 with
weekly and daily pivots at 3.170 and 3.125, and annual, and semiannual risky levels at 2.690, 2.441,
and 2.322. This yield tested 3.090 overnight into Monday’s trading.

Courtesy of Thomson / Reuters

Comex Gold – ($1513.8) Daily, semiannual and annual value levels are $1482.3, $1452.6 and
$1356.5 with quarterly, weekly and monthly risky levels at $1523.1, $1566.6 and $1589.3. A weekly
close below the five-week modified moving average at $1485.8 is negative for gold.

Courtesy of Thomson / Reuters

Nymex Crude Oil – ($100.04) Daily and semiannual value levels are $94.30 and $87.52 with my
annual pivots at $99.91 and $101.92, and weekly, semiannual, monthly and quarterly risky levels at
$106.55, $107.14, $119.17 and $120.52. A weekly close below the five-week modified moving
average at $103.35 keeps the weekly chart for crude oil negative.

Courtesy of Thomson / Reuters

The Euro – (1.4150) My daily value level is 1.3995 (tested this morning) with a quarterly pivot at
1.4308, and weekly and quarterly risky levels at 1.4651 and 1.4624. A weekly close below the five-
week modified moving average at 1.4254 keeps the weekly chart for the euro negative.

Courtesy of Thomson / Reuters

Weekly Dow: (12,512) The weekly chart remains positive with overbought MOJO and weekly close
above the five-week modified moving average at 12,468. Today’s value level is 12,382. My annual
value level is 11,491 with weekly, monthly, quarterly and annual risky levels at 12,818, 13,663, 13,774
and 13,890.

Courtesy of Thomson / Reuters

S&P 500 – (1333.3) My daily value level is 1317.9 with this week’s risky level at 1358.6. A close this
week below the five-week modified moving average at 1332.5 shifts the weekly chart profile to
negative.
NASDAQ – (2803) My daily value level is 2761 with this week’s risky level at 2877. A close this week
below the five-week modified moving average at 2803 shifts the weekly chart profile to negative.
NASDAQ 100 (NDX) – (2351) My daily value level is 2321 with this week’s risky level at 2399. A close
this week below the five-week modified moving average at 2355 keeps the weekly chart profile
negative.
Dow Transports – (5449) My daily value level is 5317 with this week’s risky level at 5557. A close this
week below the five-week modified moving average at 5356 shifts the weekly chart profile to negative.
Russell 2000 – (829.06) My daily value level is 809.39 with this week’s risky level at 856.31. A close
this week below the five-week modified moving average at 834.24 keeps the weekly chart profile
negative.
The SOX – (432.56) My daily value level is 428.68 with this week’s risky level at 441.47. A close this
week below the five-week modified moving average at 440.01 keeps the weekly chart profile negative.
Bank Failure Friday Scorecard – The FDIC closed three more community banks last Friday and all
three were extremely overexposed to Commercial Real Estate loans. 43 banks have failed year to
date in 2011. 365 banks have failed since the end of 2007. I still predict 500 to 800 bank failures in
total by the end of 2012 into 2013.
Definition of MOJO – This is my term for technical momentum. I use what’s called “12x3x3 slow
stochastic readings” from daily, weekly and monthly charts. The scale is zero to 10.0 where above 8.0
is overbought and below 2.0 is oversold.
Richard Suttmeier
Chief Market Strategist
ValuEngine.com
(800) 381-5576
To unsubscribe from this free email newsletter list, please click
http://www.valuengine.com/pub/Unsubscribe?

Send your comments and questions to Rsuttmeier@Gmail.com. For more information on our products
and services visit www.ValuEngine.com

As Chief Market Strategist at ValuEngine Inc, my research is published regularly on the website www.ValuEngine.com.
I have daily, weekly, monthly, and quarterly newsletters available that track a variety of equity and other data parameters as
well as my most up-to-date analysis of world markets. My newest products include a weekly ETF newsletter as well as the
ValuTrader Model Portfolio newsletter. You can go to http://www.valuengine.com/nl/mainnl to review sample issues
and find out more about my research.

“I Hold No Positions in the Stocks I Cover.”