Richard Suttmeier is the Chief Market Strategist at www.ValuEngine.com. ValuEngine is a fundamentally-based quant research firm in Newtown, PA.

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http://www.valuengine.com/pub/Unsubscribe? May 23, 2012 The NASDAQ failed at my weekly risky level at 2866 on Tuesday. Markets in Review: Asian stocks were higher on Tuesday. The Nikkei 225 ended Tuesday at 8,729 up 1.10%. The Hang Seng ended Tuesday at 19,039 up 0.62%. European exchanges traded higher again on Tuesday. The FTSE 100 ended Tuesday at 5,403 up 1.86%. The DAX ended Tuesday at 6,436 up 1.65%. The CAC 40 ended Tuesday at 3,084 up 1.88%. The yield on the 10-Year US Treasury traded up to 1.803 on Tuesday, well below its 50-day and 200-day simple moving averages at 2.024 and 2.015, as the decline in yields remains overdone. Gold traded down from $1594.4 the Troy ounce to $1561.0 with the Death Cross 50-day and 200-day simple moving averages are at $1636.8 and $1695.6. Crude oil traded down from $93.01 per barrel to $91.40 below its 200-day simple moving average at $96.29. The euro versus the dollar traded down from 1.2818 to 1.2676 below its 50-day simple moving average at 1.3103. 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 and the Sept 23rd low yield at 1.671. 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. For Crude oil I show a weekly pivot at $91.62 with the 200-day SMA at $96.29. 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 above my annual value level is 12,312 with weekly and quarterly pivots at 12,692 and 12,794. The S&P 500 is below weekly, quarterly and annual pivots at 1329.9, 1337.7 and 1363.2. The NASDAQ is above my annual value level at 2698 with weekly and quarterly pivots at 2866 and 2911 The weekly level was tested at Tuesdays high. Transports stayed below my weekly risky level at 5083. The Russell 2000 closed on the cusp of my weekly pivot at 759.03. 5. ValuEngine Valuations Stocks remain cheap fundamentally with 75.4% of all stocks undervalued, but keep in mind that on October 4th 93.5% were undervalued. A factor is the low 30-Year bond yield at 2.81%. Ten sectors are undervalued with six overvalued. Autos-Tires-Trucks 23.6% UV, Basic Materials 21.1% UV, Oils-Energy 14.2% UV, and Business Services 10.7% UV. VE Morning Briefing If you want expanded analysis of the US Capital Markets go to this link and sign up: http://www.valuengine.com/nl/mainnl?nl=D