Markets Rally in Last Hour to Close Higher

DJIA + 81.58, +0.73% SP500 + 8.70, +0.70% NASDAQ Comp. + 22.96, +1.03% Russell 2000 + 6.69, +1.01% Oil closed at $141.65 up $5.60 Oil rose on Wednesday on reports that Iran performed additional missile testing. USO rose $4.69 bouncing out of the bull flag pattern that we mentioned in Tuesday’s post. XLE and OIH rose on a strong support bounce. Markets rose in afternoon trading which made the intraday cycle a complete down, up, down and up. The DJIA, SPX and Nasdaq each formed white bullish harami patterns that remained below the R1 level of Wednesday’s large black candle. Watch on Friday for either a support break or a bounce through the R1 short-term resistance level as each of these indices trade in a tight horizontal channel. The RUT also stayed below its R1 level of Wednesday’s candle. Watch for an R1 breakout or drop below today’s low. Support is at 650. Dave’s C – Entry Setup: CF moved higher after closing above its 30 DMA on Wednesday. AGU closed above its 30 DMA BIDU rose early but sold off near its 50 DMA for the second straight day. It fell below its double bottom breakout point and formed a bearish engulfing pattern. AAPL formed a lower high and lower low white candle. It had fallen below the low of the high day but rebounded to close up. AAPL closed between its 20 and 30 DMA. FSLR followed Wednesday’s 30 DMA breakout with a large white candle that broke above its 20 and 50 DMA. FSLR rose 5.5 % after yesterday’s 1.3% rise. POT again moved above its 30 DMA and today managed to close 35 cents above its 30 DMA. MA rose less than 1% but moved over $12 in after-market trading on news it would be added to the S&P 500. CELG formed a large white candle as it made its highest close of 2008. IPI reversed Wednesday’s move up with a bearish engulfing pattern. V moved higher on Thursday while continuing to consolidate near support. MON formed a spinning top following Wednesday’s inverted hammer. MOS moved up closing 96 cents below its 30 DMA. X followed Wednesday’s inverted hammer rising 4.56% while forming an inside day. Thursday’s Action Moving Up: FSLR, X, USO, CF, POT, MA, CNX, FWLT, MOS, IBM, ANR, AAPL, MEE, CELG, CLF, AGU, MTL, PCLN, BTU, V, MON, GS, SCHN, GRMN, NUE Moving Down: DECK, BIDU, LEH, STRA, IPI, NKE, MER, JASO Intermediate Term Market Trend: Down Short Term Market Trend: Neutral