Support Holds Again

DJIA - 45.24, -0.56% SP500 + 4.45, +0.54% NASDAQ Comp. + 11.80, +0.81% Russell 2000 + 1.51, +0.34% Exchange NYSE NASD Advancing 2,046 1,308 Declining 1,737 1,453 Oil $46.47 +$2.80 Gold $895.80 +$37.00 SOX 208.28 +8.29 VIX 47.27 -0.02 The VIX moved down slightly confirming the modest rise in the SPX on Friday. Strongest Sectors: XLF +3.33%...XLE +2.91%...XLB +1.52% Weakest Sectors: XLI -3.01%...XLP -0.97%...XLY -0.30% Sector Watch Up Trending: Sideways: XLE, XLP, XLU, XLY, XLV, XLI, XLB, XLK Down Trending: XLF The combination of weaker earnings in the financial sector and stronger earnings in other companies seems to offset each other and keep the indices holding above support. The weakness in bank stocks seemed to prevent a significant support bounce in the broad indices. The SOX, +4.15%, was stronger than the broad indices as it formed a bullish engulfing pattern on Friday. Oil appears to be forming a potential double bottom and potential trend change. See our comment below on USO. Gold had a horizontal breakout Friday suggesting trend continuation. Index Commentary The DJIA formed a hammer in the 7,900 to 8,100 support area. The SPX formed a hammer in the 800 to 830 support area. The Nasdaq formed a bullish harami in the 1,450 support area. The RUT formed a white spinning top in the 430 to 450 support area. Earning releases had a large impact with stock prices this past week beginning with STT on Tuesday and other financial stocks missing estimates and leading the financial sector lower. On the positive side IBM, AAPL and GOOG experienced strong support bounces. Earnings announcements continue this coming week. We have listed below many of the announcements that we’ll be watching. Earnings Friday, Jan 23 GE +0.37 inline +0.37 estimates HOG +0.34 below +0.57 est. SLB +1.03 below +1.05 est. XRX +0.30 below +0.34 est. Monday, Jan 26: BMO - BOH, CAT, FCX, HAL, KMB, MCD, DGX, AMC - AXP, AMGN, CNW, JEC, NFLX, QLGC, STLD, TXN, VMW, ZION Tuesday, Jan 28: BMO - AKS, BMY, CHKP, DAL, DD, EMC, ENR, HSY, KCI, LXK, NUE, BTU, STJ, TRV, X AMC – ALTR, AMLN, BBOX, CHRW, DV, ETFC, GILD, JBHT, MOLX, NSC, STM, SYK, JAVA, WBSN, YHOO Wednesday, Jan 29 BMO – T, BHI, BDX, BA, COP, GLW, GD, HES, LM, PM, PJC, PX, USG, WLP, WFC AMC – ARG, ALL, CTXS, KEX, LRCX, MTW, OI, QCOM, SBUX, WDC Thursday, Jan 30 BMO – MMM, ALK, BUD, AZN, BDK, CELG, CHTT, CL, CNX, CAL, EK, LLY, F, HP, JBLU, LLL, ERIC, OXY, RTN, TROW, UA, LCC AMC – AMZN, BRCM, BCR, CA, DRIV, JNPR, KLAC, MXIM, MCHP, VAR Friday, Jan 31 BMO – AME, ACI CVX, XOM, HON, IVZ, KLIC, FSTR, PCAR, PG Stock Commentary AET – potential horizontal breakout bull flag support bounce GME – support bounce in narrow trading range, potential breakout HP – bullish engulfing JEC – piercing line MOS – bullish engulfing MYGN – Up trend consolidation near horizontal resistance, potential horizontal bull flag, <> PCLN – bullish engulfing on 50 DMA support USO – bullish engulfing support bounce at potential double bottom with bullish divergence in the 14/5 stochastic Stocks to Watch on Monday Leading Stocks: Holding Above 30 DMA JOSB…BCO…ROST…ESI…JW.A…MYGN…AMED…BCR…MON…RIMM…SYNA…BLUD…AME…APH…DLTR…DV…STRA…AYE…K…PCP…AET…CCC…GES…GME…HP…IIVI…NE…RIO…SWN…URBN…POT Moving Above 30 DMA = 10 ATW…CAM…CHTT…CTSH…DNA…LAYN…MOS…NIHD…NOV…RIG Moving Below 30 DMA = 8 AGN, ATK, BIIB, GILD, GIS, ICLR, RTN, TEVA Staying Below 30 DMA CERN, FLIR, HLF, MTD, QSII, CIR, JEC, KEX, OSIP, PCLN, PCR, PETS, SHW, SPN, TECH, UTX, VAR, BAP, NGS, WCG, ACL, AMZN, BYI, CL, FLS, FWLT, HDB, LNN, OI, ADBE, AMX, CBST, DECK, FLR, MBT, SNA, VMI, WMS, AAPL, AFAM, EPR, FSTR, HAS, LFC, MMM, MTW, NEU, RCI, SOHU, VIP, JCOM, MCRS, NDAQ, ANSS, CHU, EZPW, NILE, PSSI, PSYS, VIVO, WAB, CELG, ENDP, IRIS, ISRG, SPTN, ESRX, PPD, PRGO, SINA, AXYS Friday’s Action Moving Up: AEM, GS, GDX, CF, FWLT, AGU, MOS, NDAQ, POT, PCLN, MS, CLF, BRCM, IPI, PNRA, SCHN, X Moving Down: MA, AFAM, STRA Intermediate Term Market Trend: Neutral – DJIA, SPX, Nasdaq, RUT Short Term Market Trend: Neutral