Thrust Day Support Bounce on Monday...

DJIA + 235.44, +2.85% SP500 + 26.83, +3.04% NASDAQ Comp. + 9.07, -0.54% Russell 2000 + 18.95, +3.95% Exchange NYSE NASD Advancing 1,320 1,072 Declining 2,373 1,644 Oil $59.03 +$2.69 Gold $921.30 -$9.60 SOX 251.28 +9.00 VIX 30.24 -2.88 The VIX moved down and did confirm the move up in the SPX on Monday. Today is the lowest close since September 12, 2009. Strongest Sectors: XLF +6.59%...XLY +4.93%...XLI +3.67% Weakest Sectors: XLU +0.00%...XLV +0.99%...XLP +2.10% Eight of nine Sectors moved higher on Monday. Financials, Consumer Discretionary, Industrials and Energy were stronger than the SPX +3.04%. Financial stocks stronger than XLF: ZION, RF, AFL, PRU, BAC, SPG, USB, STT, TROW, WFC, IVZ, MS, AXP, ICE, JPM, PNC and ETF’s UYG and FAS. Leading tech stocks stronger than XLK include: AMT, EBAY, CSCO, AMAT, AAPL, IBM, QCOM and DELL. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK Sideways: XLY, XLE, XLV, XLF, XLP, XLI Down Trending: XLU SPX Key resistance levels: 902 = Weekly R1 930 = horizontal 945 = 200 DMA Key support levels: 879 = weekly S2 869 = 30 DMA 866 = 61.8% Fib level On Friday, May 8 Tom Sosnoff in the Weekly Wrap asked, what was my support target for the week of May 11 to 15? Consistent with my blog posting I saw two key support levels, 890 and 875. So I stated a support range of 875 to 890. On Friday May 15 the close on the SPX (cash) was 882.88. The low on the ESM9 S&P futures was 876.75, the close was 883. The mid point between 875 and 890 is 882.50. Hmmmmmmmm, I wonder if there is any validity to this support and resistance stuff? In the Friday post I wrote, “The SPX found support at the 882 level for the third straight day. Watch for range expansion on Monday which has recently been typical on the Monday after options expiration. “Friday was the low day in the recent pull back. If Monday sees a support bounce, watch for a break of the high of the low day.” You may have all noticed the charts I posted on Friday for you to study over the weekend FWLT, RIMM, CTSH and ORLY were flag support bounce opportunities. You may have also noticed all last week during the pull back I left the three month chart targets under the Index Commentary. If you were paying attention on Monday morning you should have been prepared to have a great day in the market. At the Open on Monday SPY – large white candle support bounce KOL – large white candle confirms inverted hammer FAS – support bounce large white candle STT – bullish engulfing ZION – large white candle break high of low day EBAY – large white candle resistance breakout new high close ADBE – white candle break high of low day WYNN – white candle inside day SCHN – large white candle break high of low day SNDA – doji JNPR – white candle break high of low day CTV – white candle support bounce BBT – white candle confirms hammer OSG – white candle breaks high of low day EL – white candle breaks high of low day ICE – white candle new high close WHR – white spinning top confirms inverted hammer VAR – hammer RIMM – hanging man Stocks to Watch on Tuesday Leading Stocks Holding Above 30 DMA BIDU, CLB, ICE, DLB, VPRT, CTSH, BAP, CAM, GMCR, ATW, GR, SYNA, EBAY, TRLG, FSLR, HDB, PCP, RIMM, WCG, UYG, HLF, AMX, MHS, FAS, AFAM, K, RBN, ESRX, PCLN, VAR, PCR, PPD, HANS, SWN, FLS, TDG, NIHD, RCI, STRA, ACN, JOYG, MON, MUR, PSYS, NTLS, CHL, DECK, MOS, DV, BDX, AXYS, BIIB, BYI, CPLA Moving Above 30 DMA = 7 AAPL, JOSB, SPWRA, SYNA, URE, WAB, X Moving Below 30 DMA = 2 AMED, ESI Staying Below 30 DMA PETS, CBST, GES, WRC, SNA, SNHY, WMT, AMZN, EZPW, GXDX, JW.A, JEC, MCD, PWR, DLTR, USD, DECK, ORCL, ALGT, JCOM, NFLX, GME, GILD, GPRO, MYGN, SLGN, BKC, APEI, BLUD Intermediate Term Market Trend: Neutral Short Term Market Trend: Up