Now That's a Continuation of the Support Bounce...

DJIA +256.80, +2.08% SP500 + 30.28, +2.27% NASDAQ Comp. + 64.07, +2.80% Russell 2000 + 21.33, +3.08% Oil $114.93, +1.14 new closing high The broad indices had a mega-rally today blowing through the R1, R2 and R3 resistance levels of Friday’s large black candle. Strong earnings reports from INTC yesterday and IBM after the close today suggests that the tech sector is strong and gave a strong footing to this rally. The PHLX Semiconductor Index ($SOX) rose 5.45% which is a strong confirmation of tech strength. This rally was broad with 28 of 30 Dow stocks moving higher, 97 of the Nasdaq 100 stocks up and 457 of the S&P 500 stocks gaining today. The ETF’s DIA, SPY, QQQQ and IWM gapping higher with undeniable confirmation of yesterdays hammer formations. Also if you look at the last four days they form non-idealized Morning Stars. If you were watching for hammer confirmation early in the day you had great entries early in the day. The next major hurdle in this market is the horizontal resistance on the DJIA at 12,750, S&P at 1,390 to 1,400, Nasdaq Composite at 2,390 to 2,430 and Russell 2000 at 720 to 730. If the indices break resistance the intermediate term trend status changes from neutral to up. If you have been watching our postings and entering support bounces in up trending stocks over the past couple of days, you saw some nice profits from today's strong move up. Dave’s Insight: “Stay focused and trade the Chart Signals.” Today’s Action Moving Higher AGU, BIDU, CELG, CF, CLF, DECK, EBAY, FSLR, JASO, MEE, MON, MOS, POT, MTL, SCHN, STRA, AMZN, PCLN, Support Bounces CAT, GLW, SNDK Breakouts CSX, DD, DE, ELN, IBM Moving Higher on Earnings Today JCI, JPM, WFC INTC gapped higher from last night’s earnings report Moving Lower on Earnings Today WWW Moving Higher on Earnings After Market IBM, EBAY, GILD also reported earnings AMC today Brokerage stocks GS, LEH, MER, MS along with FWLT had strong support bounces from a higher low on their respective charts, each showing signs of trend reversal. Intermediate Term Market Trend: Neutral Short Term Market Trend: Up