Friday's Higher Low Support Bounce Follows Through...Indices Close Above 50 DMA

DJIA + 359.15, +4.20% SP500 + 44.61, +5.14% NASDAQ Comp. + 81.55, +5.41% Russell 2000 + 30.28, +6.69% Exchange NYSE NASD Advancing 3,274 2,278 Declining 604 660 Oil $43.60 -$0.91 Gold $841.70 +$6.30 SOX 221.51 +12.29 VIX 52.37 -4.39 Strongest Sectors: XLF +11.18%...XLB +6.12%...XLY +5.32% Weakest Sectors: XLP +2.34%...XLE +3.10%...XLU +3.41% Sector Watch Up Trending: Sideways: XLE, XLP, XLU Down Trending: XLF, XLY, XLV, XLI, XLB, XLK The FOMC lowered the Fed Funds rate on Tuesday giving catalyst to the continuation of the short-term up trend that has been in place for the past three weeks, forming an inverse head and shoulders pattern and a bull flag before today. The stocks we posted comments on Friday and suggested on Monday to watch bounced with above average returns today: ANSS +6.50%, EPR +18.18%, NDAQ +12.66%, DECK +7.96%, NILE +7.25%. Also on Monday we highlighted DIA which rose 4.16% today. Also last week we posted on XLF as the strongest sector of the past three weeks rose 11.18% today. Index Commentary The DJIA confirmed Friday’s hammer and bullish harami while closing above its 50 DMA. The SPX confirmed Friday’s hammer closing above its 50 DMA. The Nasdaq confirmed its piercing line pattern bouncing off its higher low and closing just above its 50 DMA. The RUT confirmed Friday’s piercing line pattern while bouncing off its higher low and closing just below its 50 DMA. Stocks to Watch on Wednesday Leading Stocks: Holding Above 30 DMA AYE…EZPW…PCLN…BAP…DLTR…FLR…FSTR…JCOM…JEC…PCR…ATK…B…IRIS…RTN…SNA…WMS…HAS…JOSB…AMZN…BIIB…BYI…HDB…LFC…PSSI…AMX…CERN…FWLT…GME…MTW…NEU…QSII…VMI…WAB…OI…PPD…CHU…FLS…MBT…RIO…AAPL…BCO…MOS…NDAQ…ROST…SHW…VIVO… AET…ESRX…NGS…POT…UTX Moving Above 30 DMA = 26 AGN…ANSS…APH…CAM…CCC…CIR…CL…DECK…DV…EPR…ESI…GES…GILD…JW.A…KEX…MBT…MYGN…NIHD…NILE…NOV…PCP…SINA…SPN…SPTN…TECH…TEVA Moving Below 30 DMA = 0 None Staying Below 30 DMA LAYN…OSIP…SOHU…SWN…MMM…FLIR…PETS…STRA…BCR…ACL…AME…CBST…CHTT…GIS…PRGO…PTNR…TECH…AXYS…RCI…AFAM…HLF…MON…MTD…URBN… ICLR…CTSH…LNN...MCRS Tuesday’s Action Moving Up: FSLR, GS, POT, MA, STRA, CF, PCLN, MON, MOS, AGU, X, NDAQ, PNRA, AEM, ADM, GDX, SCHN, KBE, ZION, NUE, ESRX, MS, SOHU, V, CNX, HANS, SINA, KRE, CLF, KMT, ONXX, NIHD, EBAY, COH, IPI, GRMN, BTU, FWLT, MEE, AFAM, BRCM, LAMR, LCC, UAUA, Moving Down: None Intermediate Term Market Trend: Neutral – DJIA, SPX, Nasdaq, RUT Short Term Market Trend: Down