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

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June 8, 2010 – The Multi-Year Bear Market - led by Housing and Community Banks

US Treasuries near resistances as supply test begins. Gold is nearing its May 14th high at
$1249.7 as currency of last resort, and as the euro stays above this week’s support at 1.1863.
Crude oil is range-bound between $67.15 per barrel and $75.72 balanced by weak demand and
risks related to Hurricane season. We are not in a bull market correction; we began the second
leg of a multi-year bear market with the April 26th highs. The bear is being led by housing and
community banks.
US Treasury Yields –My quarterly support is 3.467 with weekly resistance at 3.010. Supply will be
tested beginning today with a $36 billion auction of 3-Year notes. Wednesday $21 billion 10-Year notes
are auctioned. On Thursday $13 billion 30-Year bonds are auctioned for a total $70 billion this week.
For the 3-Year I have annual pivots at 1.202 and 1.139 with weekly resistance at 0.989.

Chart Courtesy of Thomson / Reuters

Comex Gold – has rising MOJO on its daily chart. My semiannual pivot is $1186.5 with weekly and
daily pivots at $1225.8 and $1243.8, and monthly resistances at $1265.9 and $1277.4. I continue to
consider Gold as the currency of last resort.

Courtesy of Thomson / Reuters

Nymex Crude Oil – shows rising MOJO on its daily chart with daily resistance, the 200-day simple
moving average and my annual risky level at $75.63, $76.75 and $77.05 as resistances. This week’s
support is $67.81. This keeps oil in a trading range between $67.15 and $75.72.

Courtesy of Thomson / Reuters

The Euro – shows oversold MOJO on its daily chart despite. This week’s support is 1.1863 with a daily
pivot at 1.1938, and quarterly and monthly resistances at 1.2450 and 1.2679.

Courtesy of Thomson / Reuters

Daily Dow: shows declining MOJO after failing to take out the 200-day simple moving average at
10,301 last week. We need daily closes above my weekly pivot at 9,986 to signal some stability, but
that did not happen on Monday. Without that the downside is significant – Dow 8,500 before 11,500.

Courtesy of Thomson / Reuters

Weekly Dow: shows declining MOJO with quarterly support lagging at 7,490. Weekly closes below my
annual pivot at 10,379 keeps the weekly chart negative.

Chart Courtesy of Thomson / Reuters

The Housing Index (HGX) is now down 6.1% year to date after a decline of 27.3% from its April high
to May low, and is down 67.1% from its July 2005 high. The weekly chart is negative. My model shows
no nearby support with my monthly pivot at $109.23 with the 200-week simple moving average as
strong resistance at $140.53. This average was a strong support from July 2006 through July 2007. My
analysis suggests selling strength on housing related stocks.

Chart Courtesy of Thomson / Reuters

The America’s Community Bankers Index (ABAQ) is up just 3% year to date following a 17.5%
decline since peaking as predicted on April 26th. This puts the index down 51.6% from its December
2006 high. ABAQ has a negative weekly chart profile with semiannual support at $146.67, my monthly
pivot at $163.33 and my semiannual resistance at $181.00 which was tested at the April 26th high. This
analysis indicates that investors should be selling community banks on strength.

Chart Courtesy of Thomson / Reuters

The Regional Bankers Index (BKX) Is still outperforming year to date up 8.9%, but its down 21.0%
since peaking as expected at $58.81 on April 21st. Since peaking in February 2007 the BKX is down
61.6%. The weekly chart is negative with my semiannual support at $40.76, a monthly pivot at $48.58
and semiannual resistance at $59.12. Time for investors to sell regional banks on strength.

Chart Courtesy of Thomson / Reuters

That’s today’s Four in Four. Have a great day.
Richard Suttmeier
Chief Market Strategist
www.ValuEngine.com
(800) 381-5576
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
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“I Hold No Positions in the Stocks I Cover.”