SPX Bounces at 980 Support and Rises to Monday's R2...

DJIA + 61.22, +0.66% SP500 + 6.79, +0.69% NASDAQ Comp. + 13.32, +0.68% Russell 2000 + 5.22, +0.94% Exchange NYSE NASD Advancing 1,856 1,678 Declining 1,144 955 Oil $72.42 +$3.23 Gold $943.30 +$5.60 SOX 293.42 +1.75 VIX 26.26 +0.31 The VIX moved up and did NOT confirm the move up in the SPX on Wednesday. The SOX confirmed the move up in the Nasdaq. Strongest Sectors: XLE +1.86%...XLV +1.40%...XLB +1.31% Weakest Sectors: XLF -0.07%...XLK +0.26%...XLI +0.29% Eight of nine sectors moved higher on Tuesday. Energy, Healthcare, Materials, Consumer Discretionary and Utilities were stronger than the SPX +0.69%. Financial stocks stronger than XLF -0.07%: MET, ZION, RF, WFC, TRV, MMC, ICE, PRU, SCHW, CB, AFL, USB, MS, AOC, TROW, ALL, AXP, STT, BK and ETFs UYG and FAS. Tech stocks stronger than XLK +0.26%: QCOM, T, CSCO, EMC, ORCL, SYMC, EBAY, IBM, TXN, VZ, AAPL, MSFT and YHOO. Sector Watch Up Trending: XLK, XLB, XLY Horizontal Breakout: XLV Sideways: XLE, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 992 - 996 = recent support low 1,007 = Nov horizontal resistance 1,025 = 950 Chart target 1,044 = October horizontal Key support levels: 980 = last broken resistance now support 962 = July 23 S1, 30 DMA, 38.2% Fib extension 944 – 956 = old January/June/July resistance The ES futures fell overnight on Tuesday on weakness in China, Japan and Europe and opened near Monday and Tuesday’s low. The futures and SPX began to rise after the open and rose to 999.61 around 1 pm ET before settling back and closing at 996.46 near Monday’s R2 area.

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DJIA volume was an average 176 million shares. Many stocks continued their bull flag support bounces and we mention many of them in tonight’s post. Guidance: The intermediate term trend is still up, as buyers entered the market for the third day in a row at the 980 support area. The key on Thursday is to watch if buyers drive the SPX through Monday’s S2, the 1,000 area or if they let sellers push the SPX back to support. Stay with stocks that follow through on their bull flag bounces and horizontal breakouts. Flag Setups and Bounces in Progress: JCG, JCI, WLT, FLS, WYNN, AXP, STT, JOYG, GRMN, WHR, AGCO, AGU, X, FWLT, SPG, ZION, BAC, BDK, DE, CAT, DD, DOW, CERN, SHLD, MA Breakout Setup: JEC, HOLX Key stocks CVX, DD, KFT, MRK, PFE and XOM were strong on Wednesday. AAPL +60 cents QCOM +57 cents GOOG -1.31 BIDU +3.38 NDX 100 stocks stronger than the NDX included VRTX, HOLX, DISH, ROST, CELG, GILD, XRAY, MRVL, EXPE, SIAL, JOYG, BIIB, TEVA, QCOM, AMZN, ISRG and BIDU. Stocks to Watch on Thursday Leading Stocks Holding Above 30 DMA PWRD, CPLA, ACN, PSYS, MHS, AMED, AMX, BYI, CTSH, AAPL, PETS, USD, FUQI, JOSB, BAP, CAM, DLB, EBAY, FAS, NIHD, PCLN, SNHY, TDG, UYG, WRC, ESI, MOS, WCG, SNA, X, CBST, WAB, BLUD, CLB, JOYG, PCP, URE, WMT, EZPW, RBN, AFAM, CHL, FLS, VAR, BKC, DV, GR, CLB, HANS, JEC, GME, HLF, BIIB, VPRT, RCI, ATW, GES, HDB, ORCL, RIMM, STRA, MON Moving Above 30 DMA = 2 MUR, NFLX Moving Below 30 DMA = 1 RIMM Staying Below 30 DMA VPRT, BIDU, DECK, DLTR, JCOM, SLGN, SPWRA, AMZN, GMCR, GXDX, PPD, PWR, SWN, TRLG, MYGN, ESRX, ALGT, APEI, GILD, K, FSLR, GPRO, SYNA, BDX, JW.A, MCD, FAZ, NTLS, ICE Intermediate Term Market Trend: SPX, DJIA, RUT = Neutral, Nasdaq = Up Short Term Market Trend: Neutral