Consolidation Continues...Nasdaq Rises...

DJIA - 1.43, -0.02% SP500 + 3.29, +0.35% NASDAQ Comp. + 17.73, +0.96% Russell 2000 + 3.14, +0.60% Exchange NYSE NASD Advancing 1,796 1,629 Declining 1,155 1,072 Oil $70.01 +$1.92 Gold $954.00 +$2.30 SOX 282.64 +12.05 VIX 28.27 -1.50 The VIX moved down and did confirm the move up in the SPX on Tuesday. The VIX had its lowest close in the VIX since September 12, 2008. Strongest Sectors: XLB +1.79%...XLE +0.96%...XLF +0.73% Weakest Sectors: XLP -0.89%...XLV -0.51%...XLU -0.26% Five of nine sectors moved higher on Tuesday. Materials, Energy, Financials, Consumer Discretionary and Technology were stronger than the SPX +0.35%. Financial stocks stronger than XLF +0.73%: TROW, AXP, KEY, IVZ, ZION, PNC, STT, NTRS, MMC, SCHW, WFC, BK, MET and ETF FAS. Leading tech stocks stronger than XLK +0.44% include: TXN, GLW, AMT, INTC, DELL, SYMC, ADBE, AMAT, QCOM, MA, YHOO, CSCO, IBM, ORCL, and VZ. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY, XLE Sideways: XLV, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 944 = January horizontal 962 = 161.8% Fib extension Key support levels: 930 = horizontal & 200 DMA 913 = Friday’s S1 907 = Friday’s S2 899 = Thursday’s S1 875 = horizontal On Tuesday CSCO and TRV both rose slightly on their second day as a DJIA component. Both stocks are at horizontal resistance with a potential for a breakout to the upside. Tuesday’s trading followed the narrow congestion pattern of the past five trading days going back to last Tuesday. The SPX rose to 945 resistance early and then sold off to the 937 area only to rise during the afternoon back to 946. During the last hour the SPX sold off once again to end the day at 942.42. Watch again on Wednesday for a break of resistance or support. Remember the market is in a 13 week up trend and all four broad indices are above their 200 DMA as well as their shorter 20, 30 and 50 DMA. In an interesting reversal of strength from Monday when only the DJIA was positive, on Tuesday the DJIA was negative while the SPX, Nasdaq and RUT were all positive. Once again the DJIA volume was below average indicating that there is not a lot of selling occurring at this price level which in a consolidation pattern of an up trend is bullish. Many individual stocks made strong moves even though the indices other than the Nasdaq were near unchanged. The Nasdaq was the strongest index on Tuesday rising 17 points or +0.96%. Key Nasdaq stocks INTC, DTV, SYMC, ADBE, BIDU, QCOM, GENZ, BIIB, CSCO, TEVA, AMZN, ORCL, CELG and EBAY moved higher. AAPL, GOOG, FSLR, ATVI, AMGN and ATVI moved moderately lower. Fifteen of our At the Open on Tuesday list stocks showed much stronger gains than the indices on Tuesday. See the list below... Oil rose to its highest level since last November. Index Commentary The DJIA formed a doji… three month chart target 10,340…volume was a below average 187 million shares …closed above its 20, 30, 50 and 200 DMA. The SPX formed a white spinning top …3 month chart target of 1,075…closed above its 20, 30, 50 and 200 DMA. The Nasdaq formed a white spinning top which is a new high close…3 month chart target of 2,065…closed above its 20, 30 50 and 200 DMA. The RUT formed a white spinning top….3 month chart target 606…closed above its 20, 30, 50 and 200 DMA. At the Open on Tuesday SPY – doji at resistance KOL – white spinning top +2.86% USD – white candle +8.26% FAS – doji +1.92% JOYG – shooting star +2.99% BIDU – white spinning top +1.73% ADBE – white spinning top +2.06% X – horizontal breakout +7.87% ISRG – white candle above 200 DMA +2.80% FWLT – white spinning top +2.95% SHLD – black spinning top UNG – doji NTAP – white candle bull flag support bounce +2.74% ZION – white spinning top +2.30% CTV – bull flag support bounce confirm hammer +4.65% AAPL – hanging man RIMM doji at horizontal resistance VPRT – large white candle support bounce breakout +6.76% DECK – large white candle resistance breakout +4.68% MICC – black spinning top at 20 DMA GES – spinning top at horizontal resistance TRLG – spinning top at horizontal breakout +1.44% Stocks to Watch on Wednesday Leading Stocks Holding Above 30 DMA BIDU, CLB, ICE, VPRT, CTSH, BAP, CAM, GMCR, ATW, GR, EBAY, TRLG, HDB, PCP, RIMM, WCG, UYG, HLF, AMX, K, PCLN, VAR, PCR, PPD, SWN, FLS, TDG, NIHD, RCI, JOYG, MUR, PSYS, CHL, MOS, DV, AXYS, BIIB, BYI, CPLA, SPWRA, SYNA, X, MCD, BDX, CBST, AAPL, DLTR, ESRX, GES, GXDX, ORCL, RBN, USD, WRC, DECK, FAS, WMT, CPLA, JEC, MYGN, PWR, URE, AMZN, DV, EZPW, JCOM, JOSB, SNA, SNHY, STRA, BLUD, GILD, SLGN, JW.A, FSLR Moving Above 30 DMA = 2 ACN, DLB Moving Below 30 DMA = 1 JOSB Staying Below 30 DMA AFAM, MHS, NTLS, APEI, WAB, ESI, HANS, URE, MON, AMED, PETS, PWR, ALGT, NFLX, GME, GPRO, BKC Intermediate Term Market Trend: Neutral Short Term Market Trend: Neutral