7/31/2019 The major equity averages straddle 200-day moving averages.

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May 21, 2012 The m ajor equi t y averages s t raddle 200-day m oving averages.

Markets in Review: Asian stocks were lower on Friday. The Nikkei 225 ended Friday at 8,611 down2.99%. The Hang Seng ended Friday at 18,952 down 1.30%. European exchanges were also lower

on Friday. The FTSE 100 ended Friday at 5,267 down 1.33%. The DAX ended Friday at 6,271 down 0.60%. The CAC 40 ended Friday at 3,008 down 0.13%. The yield on the 10-Year Treasurytraded down to 1.692, approaching the September 23, 2011 low yield at 1.671. Gold traded as high as$1597.5 the Troy ounce to $1597.5 after holding my monthly value level at $1525.8 and taking out myannual pivot at $1575.8. Crude oil traded down to $90.93 per barrel well below its 200-day simplemoving average at $96.24. The euro versus the dollar traded as low as 1.2646.

Todays Four in Four Key Levels:1. Yields The yield on the 10-Year Treasury is below my semiannual pivot at 1.903 with a

monthly pivot at 1.734, the Sept 23rd low yield at 1.671 and weekly risky level at 1.635.2. Commodities Gold has a monthly value level at $1525.8 the Troy ounce with an annual

pivot at $1575.8, a weekly pivot at $1596.6, and semiannual risky level at $1635.8. ForCrude oil I show a weekly pivot at $91.62 with the 200-day SMA at $96.24.3. Currencies The euro versus the dollar shows a monthly value level at 1.2257 with

weekly and semiannual pivots at 1.2842 and 1.2980.4. Equities The Dow Industrial Average is below weekly and quarterly pivots at 12,692 and

12,794 with my annual value level at 12,312 and the 200-day at 12,199. The S&P 500 isbelow weekly, quarterly and annual pivots at 1329.9, 1337.7 and 1363.2 with the 200-dayat 1278.2. The NASDAQ is below my quarterly pivot at 2911 with the 200-day at 2742, andmy annual value level at 2698. Dow Transports is down 2.9% YTD and closed Fridaybelow its 200-day at 4931 with my semiannual value level at 4407 and weekly risky levelat 5083. The Russell 2000 closed Friday below its 200-day at 753.20 with a semiannualvalue level at 572.90, and weekly risky level at 759.03. Another negative is thatTransports and Small Caps, the leaders in 2011, are the first to fall below 200-day SMAs.

5. ValuEngine Valuations Stocks remain cheap fundamentally with 77.6% of all stocksundervalued, but keep in mind that on October 4th 93.5% were undervalued. A factor isthe low 30-Year bond yield at 2.80%. Eleven sectors are undervalued with fiveovervalued. Autos-Tires-Trucks 25.7% UV, Basic Materials 22.4% UV, Oils-Energy 16.0% UV, Business Services 12.0% UV, and Consumer Discretionary 11.3%.

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