Stocks Rise as Oil Falls Again

DJIA + 212.67, +1.85% SP500 + 19.02, +1.48% NASDAQ Comp. + 29.18, +1.22% Russell 2000 + 14.84, +2.02% Exchange NYSE NASD Advancing 2,455 2,096 Declining 641 767 Oil $118.59 -$2.56 Gold $837.20 +$3.20 $SOX 362.83 +4.02 Strongest Sectors: XLF +4.04%...XLY +2.32%...XLI +2.24% Weakest Sectors: XLE -1.76%...XLU +0.16%...XLV +0.58% XLF, gaining more than 4% was the strongest sector for the second day in a row on Thursday with XLE, energy the only negative sector. Money center banks BAC, JPM, C, USB, DB, IBN, and WFC had gains between 2 to 6% on Thursday. were all higher on the day. FNM gained 22% and FRE rose 11%. Oil continues to be the primary driver with credit and financial being second. With oil down today stocks had a very strong up day. The oil and USO charts each formed a Falling 3 Methods, a 5-candle short-term continuation pattern. The RUT closed above 739 resistance which creates a new short-term chart target 762. The RUT traded above its 200 DMA for the fifteenth day in a row. The RUT is again above its 20, 30, 50 and 200 DMA. The DJIA closed above horizontal resistance in the 11,632 area and has a new short term chart target 11,924. The DJIA continues in sideways consolidation as it nears horizontal resistance. The SPX is near breaking out of its sideways consolidation. A successful breakout with give a chart target of 1, 340. The Nasdaq followed through on Wednesday’s bull flag bounce and moved higher to close at its 200 DMA. Watch for horizontal or pattern breakouts on Friday. Many of our watchlist stocks were higher on Thursday, Our short-term trend status is up. Sector Watch Up Trending: XLI, XLK, XLP, XLV, XLY Sideways: XLB, XLF Down Trending: XLE, XLU Thursday’s Action Moving Up: DECK, PNRA, AMZN, NDAQ, ESRX, MS, AMLN, IBM, MTL, UAUA, LCC, PCLN, MA, FNM, GS, CLF, MER, V, BUCY, LEH, BIDU, EXPE Moving Down: POT, MOS, ANR, AGU, CNX, MEE Intermediate Term Market Trend: Up Short Term Market Trend: Up