SPX Closes at 1,044 Support...

The SPX closes slightly lower...Airlines XAL rise in support bounce... DJIA -42.25 -0.44% SPX -6.40 -0.61% COMPQ -16.69 -0.79% RUT -2.81 -0.47% Exchange NYSE NASD Advancing 1,362 1,153 Declining 1,633 1,538 Oil 66.02 +0.13 – Nov contract Gold 990.30 -7.30 SOX 321.05 -1.99 VIX 25.61 +0.66 The VIX moved up and did confirm the move down in the SPX on Friday. The SOX moved down and did confirm the move down in the COMPQ. Strongest Sectors: XLV +0.07%...XLP +0.00%...XLE -0.13% Weakest Sectors: XLI -1.40%...XLB -0.97%...XLF -0.95% Seven of nine sectors moved lower on Friday. Healthcare, Consumer Staples, Energy, Utilities and Consumer Discretionary were stronger than the SPX -0.61%. Financial stocks stronger than XLF -0.95%: SPG, PNC, USB, TRV, STT, ZION, CB, ALL, RF, MS, MMC, MET, SCHW, PRU, WFC, BK and NTRS. Tech stocks stronger than XLK -0.63%: SYMC, YHOO, AMAT, HPQ, IBM, QCOM, AMT, CSCO, T, EBAY and GLW. Sector Watch Up Trending: XLK, XLB, XLY, XLV Horizontal Breakout: XLF Sideways: XLE, XLP, XLI, XLU Down Trending: Key Resistance Levels: 1,056 = Sep 25 R1 level 1,061 = Sep 16 S1 Level 1,075 = 875 Breakout Chart Target 1,100 = September 2008 Old Support Key Support Levels 1,044 = October Horizontal Old Resistance 1,025 = 950 Breakout Chart Target 1,017 = Aug 27 Support Low The SPX was down for the third straight day on Friday. As I said in my webcast Thursday, there are several times since the March low where the SPX pulled back three to four days without turning the intermediate term trend down. The last four day pull back ended on Sept. 2. Will Monday be a fourth down day for the SPX? RIMM gapped lower and closed down $14.15 with a third quarter outlook lower than expected on Thursday after the close. Our real time virtual trades on RIMM, the Oct 85 Straddle was up $5.70 or 52% and our Oct 90/80 Strangle was up $5.08 or 75.8%. ISRG broke out on with an almost 200% volume surge. With the SPX at 1,044 the next support level is the 1,025 level. Short term traders should have exited their trades this week and be looking for a support bounce to re-enter this trend. Intermediate term traders see this pull back as still at a higher low. On Friday advancing stocks increased and declining stocks decreased from Thursday. Friday did see downward momentum slow in the SPX and all sectors. Airline stocks had a support bounce with UAUA, CAL and AMR showing strong gains. Guidance: The intermediate term trend is up with the short term trend pulling back in a bull flag pattern. The SPX held at the 1,044 support level for the second day. Many of the stocks in our lists below had a support bounce or formed an inside day on Friday. Trade the stock chart and watch support at 1,044 and resistance at 1,056 and 1,061 on the SPX. Stocks that had a bounce on Friday: HANS, AKAM, FLS, ADSK, STT, SPG, FSLR, WYNN, HOLX Potential Breakout Setups: HANS, AKAM Breakout: ISRG, CAT, JOYG, FAST, FLS, FLIR Pulling Back: BIDU, DD, X, DOW, XLNX, AMZN, NWSA, FWLT, JCG, APOL Potential C Patterns: C Pattern Breakout: ADSK Flag Setups and Bounces in Progress: DE, STT, BDK, SPG, WHR, FSLR, ZION, WYNN, BUCY, MRVL, AXP, AMAT, JEC, JCI, TXN, ADBE, HOLX, BAC, INTC Potential Down Trend Setups: RIMM, AGI, WLT, MA, V, AGCO, AMX, MON, MYGN, ORCL AAPL -1.45 QCOM +0.04 GOOG -4.29 BIDU -2.67 NDX 100 stocks stronger than the NDX: ISRG, DISH, SBUX, WCRX, SYMC, HANS, FSLR, CEPH, CELG, YHOO, VRTX, WYNN, PPDI, ERTS, HOLX, DTV, ILMN, ATVI, LBTYA, MXIM, LLTC, GILD, TEVA, FLIR, ADSK, AKAM, GRMN, APOL, MCHP, MRVL and SIAL. Stocks to Watch on Monday Leading Stocks Holding Above 30 DMA CTSH, AAPL, PETS, USD, JOSB, CAM, EBAY, PCLN, SNHY, TDG, WAB, PCP, RBN, VAR, CLB, BIIB, GES, ESRX, NTLS, ICE, NIHD, K, FLS, GXDX, BAP, FAS, FUQI, GME, PWRD, WRC, UYG, BIDU, HDB, JW.A, ATW, EZPW, JOYG, X, URE, TRLG, EBAY, GPRO, PPD, SWN, DECK, VPRT, AMZN, GMCR, ACN, SPWRA, SLGN, AFAM, FSLR, JCOM, NFLX, HANS, DV, AMED, ESI, GILD, STRA, MCD Moving Above 30 DMA = 0 Moving Below 30 DMA = 5 CPLA, DLTR, ICE, RIMM, WCG Staying Below 30 DMA ALGT, BDX, CBST, CHL, DLB, HLF, JEC, MHS, MUR, PSYS, RCI, APEI, BKC, BLUD, GR, MYGN, PWR, SNA, SYNA, MOS, AMX, BYI, ORCL, WMT, MON, FAZ Intermediate Term Market Trend: DJIA = Neutral, Nasdaq, RUT, SPX = Up Short Term Market Trend: Down