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

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June 22, 2010 Levels Tested and Key Reversa ls Loom

The yield on the 10-Year Treasury holds daily support. Gold tested monthly resistance onMonday then closes below Fridays low. Crude oil still influenced by annual pivot at $77.05. Theeuro tests quarterly resistance on Monday then closes below Fridays low. The Dow rally testedthe 50-day simple moving average. Mortgage modification program not working and gives falsereading on mortgage delinquencies.

US Treasury Yields Mondays support at 3.313 held and todays support is 3.331 as $40 billion 2-Year notes are auctioned with monthly support at 0.797. The daily chart for the 10-Year shows thelonger-term trading range between the 200-day simple moving average at 3.544 and 3.061 with annualresistances at the floor at 2.999 and 2.813. The US Treasury auctions $38 billion 5-Year notes onWednesday as the FOMC statement looms, and $30 billion 7-Year notes are auctioned on Thursday.

Chart Courtesy of Thomson / Reuters

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Comex Gold The daily chart shows rising MOJO, but Mondays all time high of $1266.5 a failed testof my monthly resistance at $1265.9. The close was below Fridays low which defines a key reversalday. Todays pivot is $1238.8. The 21-day and 50-day simple moving averages provide key supports at

$1223.0 and $1197.9.

Courtesy of Thomson / Reuters

Nymex Crude Oil The daily chart still shows overbought MOJO with oil above its 50-day and 200-day simple moving averages and annual pivot at $77.34, $76.95 and $77.05 with todays resistance at$78.55. The 21-day is lower support at $73.75.

Courtesy of Thomson / Reuters

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The Euro The daily chart shows rising MOJO as strength reached my quarterly resistance at 1.2450.Mondays close was below Fridays low resulting in a key reversal day. The 21-day simple movingaverage is support at 1.2213.

Courtesy of Thomson / Reuters

Daily Dow:The Dow is overbought on its daily chart and the 50-day simple moving average has beentested at 10,585. The 200-day simple moving average and my annual pivot are supports at 10,341 and10,379. I do not expect this short-term rebound to get back to or above the April 26th high at 11,258. Itremains Dow 8,500 before Dow 11,500.

Courtesy of Thomson / Reuters

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Help for Homeowners is just not working - There have been 1.24 million homeowners who enrolledin the $75 billion mortgage modification program, and more than a third of them have dropped out. InMay 150,000 mortgage holders bailed out of the program for a total of 436,000 who have exited sincethe program began in March 2009.

A snafu is paperwork! When banks looked at financial information, many were disqualified. Manyapplicants decided not to fill out the paperwork deluge, or claimed that the bank lost their documents,while banks claim that borrowers were not sending in completed documents. The failure of this programhas had many homes in mortgage-limbo that have delayed foreclosures and is a reason I forecastlower home prices and another wave of foreclosures in the second half of 2010. This will cause adouble-dip in housing, additional bad loans at banks, which will keep unemployment high and causethe real economy to double-dip.

The latest graph courtesy of the Federal Housing Finance Agency (FHFA) reflects the pause and

slight dip in Seriously Delinquencies in mortgage loans.

Thats todays Four in Four. Have a great day.

Richard SuttmeierChief Market Strategistwww.ValuEngine.com(800) 381-5576

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As Chief Market Strategist at ValuEngine Inc, my research is published regularly on the website www.ValuEngine.com. Ihave daily, weekly, monthly, and quarterly newsletters available that track a variety of equity and other data parameters aswell as my most up-to-date analysis of world markets. My newest products include a weekly ETF newsletter as well as the

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