The Dow Bounces Over 900 Points At Support

DJIA + 552.59, +6.67% SP500 + 58.99, +6.92% NASDAQ Comp. + 97.54, +6.50% Russell 2000 + 38.43, +8.49% Exchange NYSE NASD Advancing 2,650 2,089 Declining 919 799 Oil $58.24 +$2.08 Gold $705.00 -$13.30 SOX 215.15 +14.36 VIX 59.83 -6.63 Strongest Sectors: XLE +11.75%...XLB +8.14%...XLY +7.81% Weakest Sectors: XLP +4.00%...XLV +5.36%...XLI +5.36% Sector Watch Up Trending: Sideways: Down Trending: XLP, XLF, XLY, XLV, XLI, XLE, XLU, XLB, XLK After the DJIA fell to 7,965 around 1 pm ET buyers stepped into the market just like they had on 10, 16 and 22 to 27. Just last night we posted; “If the DJIA 7,882 to 8,143 support area is good we should see big money step in and begin to buy in that area as they did on Oct. 10, 16, 22, 23, 24, 27 and 28. Thursday and Friday become a major retest area.” And did they buy…while the DJIA rose 552.59 from yesterday’s close, the range from the low to the high on Thursday was 911.17 points. The daily range on October 13, the single largest daily point rise in Dow history, was 965.81. The daily range on October 28, the second largest daily point rise in Dow history, was 907.35. Today’s point rise from its intraday was equivalent to record setting days. So are the big money buyers still there in the area of support? Yes and in a very big way just like they have been since October 10.

Check out our leading stocks crossing above their 30 DMA today...Wow...35 stocks!

As we posted Wednesday, "If traders have been trading the short-term trend correctly they are already in short-term bearish trades and could be looking to lock in profits if support holds." We hope you were prepared to lock in profits as the markets did bounce today! Index Commentary The DJIA formed a bullish engulfing pattern…outside day…broke broke through the R1, R2 and R3 levels of Thursday’s large black candle…rose to 20 DMA…bounced at major support area. The SPX formed a bullish engulfing pattern…outside day…potential ripple bottom bounce. The Nasdaq fell to new 52-week low…formed a bullish engulfing pattern…outside day…broke through Thursday’s high. The RUT formed a bullish engulfing pattern…outside day…broke through the R1, R2 and R3 level of Thursday’s large black candle…formed a lower low that negated the potential head and shoulders bottom…forming potential double or triple bottom. Stocks to Watch on Friday Leading Stocks Holding Above 30 DMA EZPW…TEVA 35 Stocks Moving Above 30 DMA AMED…AMX…ANSS…AXYS…AYE…BAP…BCR…BIIB…BLUD…CELG…CHU…CL…DNA…ESRX…FLIR…GIS…JCOM…JW.A…LFL…MMM…MTD…OSIP…PRGO…PSSI…PSYS…QSII…RCI…RIO…TN…SAY…SHW…TECH…UTX… VIVO…WMS Stock Commentary CELG higher low…outside day…support bounce ESRX bullish engulfing…higher low GE hammer…bullish harami MMM bullish engulfing pattern TECH outside day…support bounce…higher low UTX higher low…outside day Thursday’s Action Moving Up: FSLR, MA, CF, BIDU, SOHU, PCLN, POT, CNX, NUE, BTU, ANR, MOS, X, IPI, AGU, AEM, MON, SCHN, GS, STRA, BUCY, AMZN, CLF, V, COH, ZION, PNRA, MEE, GDX, KRE, ESRX, KBE, DRYS, KMT, INFY, LAMR, DECK, NIHD, EBAY, BRCM, LDK, ONXX, UAUA, LCC, GRMN, SINA, FWLT, MS, HANS, RF, Moving Down: None In Our Watchlist Intermediate Term Market Trend: Neutral – 4 weeks Short Term Market Trend: Neutral