SPX Hits New High and Pulls Back Near Unchanged...

DJIA + 3.32, +0.03% SP500 - 0.56, -0.05% NASDAQ Comp. - 2.92, -0.14% Russell 2000 - 1.27, -0.22% Exchange NYSE NASD Advancing 1,551 1,254 Declining 1,475 1,479 Oil $74.37 +$0.48 Oct. contract Gold $942.30 -$10.90 SOX 298.95 -2.35 VIX 25.14 +0.13 The VIX moved up and did confirm the move down in the SPX on Monday. Again consider the SPX and VIX unchanged for practical purposes. The SOX confirmed the move down in the Nasdaq. Strongest Sectors: XLE +1.28%...XLV +0.70%...XLI +0.20% Weakest Sectors: XLB -0.79%...XLF -0.77%...XLY -0.72% Five of nine sectors moved higher on Monday. Energy, Healthcare, Industrials, Utilities and Consumer Staples were stronger than the SPX -0.05%. Financial stocks stronger than XLF -0.77%: C, AOC, BK, ALL, MS, MET, STT, TRV, IVZ, AXP, GS, BAC and CB. Tech stocks stronger than XLK -0.30%: DELL, YHOO, ORCL, MSFT, GOOG, EBAY, T, ADP, QCOM, VZ, HPQ and AAPL. Sector Watch Up Trending: XLK, XLB, XLY Horizontal Breakout: XLV Sideways: XLE, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 1,025 = 950 Breakout Chart target 1,044 = October horizontal 1,075 = 875 Breakout Chart target Key support levels: 1,007 = Nov horizontal resistance 992 - 996 = recent support low 980 = last broken resistance now support 962 = July 23 S1, 30 DMA, 38.2% Fib extension 944 – 956 = old January/June/July resistance The SPX along with the other broad indices rose to new highs today and then pulled back finishing near unchanged. The SPX hit 1,035.82 before closing at 1,025.57. Watch Monday’s S1 level at 1,017 and S2 level at 1,009 as important short term support levels. After a 55 point move up a 10 point correction is relatively modest and certainly healthy. DJIA volume was a moderate 190 million shares on Monday. Tuesday is a Yellow Alert day for short term traders. Guidance: The intermediate term trend is still up. Monday rose making a higher high on many charts and then pulled back on moderate August volume indicating profit taking on the run up of the last week rather than wholesale selling giving up on the trend. Short term traders may have an exit on the break of the low of the high day which was Monday for many stocks and the broad indices. Intermediate term traders likely will sit tight. As always follow your rules. Most of the Flag and Breakout Setups paused or pulled back today and are still inside their respective pattern. Flag Setups and Bounces in Progress: JCI, WYNN, JOYG, GRMN, AGCO, X, SPG, DOW, CERN Breakout Setup: DE, AGU, MA, DD, CAT, BDK, FWLT, AXP, BAC, FLS, JCG, JEC, HOLX, STT, WHR, WLT, ZION Key stocks BA, CVX, MSFT, UTX and XOM were strong on Monday. AAPL -0.16 QCOM +0.12 GOOG +3.49 BIDU +0.00 NDX 100 stocks stronger than the NDX included FSLR, DELL, ESRX, YHOO, TEVA, ORCL, HOLX, MSFT, CTSH, STLD, PDCO, GOOG, EBAY, DTV, HSIC and JOYG. Stocks to Watch on Tuesday Leading Stocks Holding Above 30 DMA PWRD, CPLA, ACN, PSYS, MHS, AMED, AMX, BYI, CTSH, AAPL, PETS, USD, FUQI, JOSB, BAP, CAM, EBAY, FAS, NIHD, PCLN, SNHY, TDG, UYG, WRC, ESI, MOS, WCG, SNA, X, CBST, WAB, BLUD, CLB, JOYG, PCP, URE, WMT, EZPW, RBN, AFAM, FLS, VAR, BKC, DV, GR, CLB, HANS, JEC, HLF, BIIB, VPRT, ATW, GES, HDB, ORCL, STRA, MON, APEI, MUR, BIDU, ESRX, GPRO, GXDX, ICE, JW.A, RIMM, BDX, DLTR, K, PWR, SLGN, SWN Moving Above 30 DMA = 1 NTLS Moving Below 30 DMA = 2 DECK, NFLX, RCI, VPRT, MCD, TRLG Staying Below 30 DMA CHL, DLB, GME, JCOM, SPWRA, AMZN, GMCR, PPD, MYGN, ALGT, GILD, FSLR, SYNA, FAZ Intermediate Term Market Trend: SPX, DJIA, RUT = Neutral, Nasdaq = Up Short Term Market Trend: Up