MarketReview

1/25/2013

Fusion Analytics Research Partners, LLC ("FARP") is not registered as an investment adviser with the SEC or any state securities agency. Rather, FARP relies upon the "publisher's exclusion" from the definition of "investment adviser" as provided under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. The site content and services offered thereon are bona fide publications of general and regular circulation offering impersonalized investmentrelated information to users and/or prospective users (e.g., not tailored to the specific investment needs of current and/or prospective users). To the extent any of the content conveyed in Strategy Session is as part of the site or services offered thereon may not be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. Any information in FARPs Strategy session is for informational purposes only please consult your investment advisor before making any investment decisions. FARP nor its affiliates do not engage in investment banking nor make markets.

S&P500Index(SPX) WeeklyChart ( ) y

S&P500stillinabullchannel(orangeshadedlines) near termsupportnear1,465(redline)upperchanneltargetsto 1,575(the2007peaks)

DowJonesTransportationIndex(TRAN) W kl Ch t D J T t ti I d (TRAN) WeeklyChart

Transports shortterm extended but breakout to new highs above 5,500 resistance (red line) is bullish. Pullbacks near 5,500 should be supported.

AllU.S.ExchangeNew52WeekHighs DailyChart All U S Exchange New 52 Week Highs Daily Chart

The 5 day moving average of new highs (pink line) has exploded in the short run it may suggest some minor overbought conditions but generally speaking a tape making more new highs consistently than new lows is bullish. The current action fits our theme of a melt up phase as fund flows rotate to equities

S&P500CumulativeAdvanceDeclineLine DailyChart y
S&P 500 A/D line @ new highs is bullish

AAIIBullishSentimentSurvey WeeklyChart AAII Bullish Sentiment Survey Weekly Chart

Bulls @ 52.34 % is starting to become something the fly on the oinment @ least for a minor corrective wave (5% 7%), though we still think an int. term basis fund flows will allow us to work higher

Broadswathofgroups participating,whichis good weakergroupsare generallydefensivein generally defensive in nature.