SPX...What a Support Bounce...

DJIA +124.17 +1.28% SPX +18.60 +1.78% COMPQ +39.82 +1.90% RUT +14.28 +2.38% Exchange NYSE NASD Advancing 2,426 2,021 Declining 609 671 Oil 66.84 +0.82 Gold 992.50 +2.20 SOX 327.67 +6.62 VIX 24.88 -0.73 The VIX moved down and did confirm the move up in the SPX on Monday. The SOX moved up and did confirm the move up in the COMPQ. Strongest Sectors: XLF +3.36%...XLI +2.07%...XLB +1.90% Weakest Sectors: XLP +0.20%...XLU +0.86%...XLV +1.09% All nine sectors moved higher on Monday. Financials, Industrials, Materials and Consumer Discretionary were stronger than the SPX +1.78%. Financial stocks stronger than XLF +3.36%: ALL, PRU, SPG, CME, MET, IVZ, TROW, CB, AFL, C, ICE, AOC, MMC, AXP KEY, BAC, SCHW, RF and ETFs UYG and FAS. Tech stocks stronger than XLK +1.65%: CSCO, AMAT, QCOM, ADBE, ADP, TXN, YHOO, SYMC, DELL, AAPL, EBAY, EMC, INTC, HPQ, T and MA. Sector Watch Up Trending: XLK, XLB, XLY, XLV Horizontal Breakout: XLF Sideways: XLE, XLP, XLI, XLU Down Trending: Key Resistance Levels: 1,061 = Sep 16 S1 Level 1,075 = 875 Breakout Chart Target 1,100 = September 2008 Old Support Key Support Levels 1,056 = Sep 25 R1 level 1,044 = October Horizontal Old Resistance 1,025 = 950 Breakout Chart Target 1,017 = Aug 27 Support Low We wrote this morning we would be watching for a support bounce and what a bounce it was. The SPX had its largest daily range, 19.75 points, for an up day since July 30 in a strong support bounce will all nine sectors rising. XLF, the leading sector since the March low, was up 3.36% and FAS 3X Financial Bull was up 9.46% which as the leading sector confirms the move up in the SPX . As referenced in the Friday post we expected the pattern, since the March low, of three or four days of pull back to be followed by a continuation of the up trend. Three days and a bounce happened once again. The Financial sector was led by insurance stock, ALL, PRU, MET, CB and AFL, exchanges CME and ICE, fund managers IVZ and TROW along with AXP and banks BAC and RF. RIMM continued lower and the gains on our real time virtual trades on RIMM, the Oct 85 straddle rose to +7.90 or 72% and our Oct 90/80 Strangle was up +7.23 or 107%. ISRG was up $1.50 on lower, but still above average volume. Guidance: The intermediate term trend is up and momentum on the short term trend moved up in the direction of the trend in a bull flag breakout. The SPX broke through the 1,056 R1 resistance and moved to the 1,061 area. Monday’s S1 is 1,054. Most of the stocks in our lists below had a support bounce with a few forming an inside day on Monday. Trade the stock chart and watch support at 1,054 and resistance at 1,061 on the SPX. On a breakout of 1,061 look for price to rise to the next resistance level of 1,075. Potential Breakout Setups: HANS, AMZN, APOL, XLNX, JCG, WYNN Breakout: AKAM, ISRG Pulling Back: Potential C Patterns: C Pattern Breakout: ADSK Flag Setups and Bounces in Progress: NWSA, FWLT, BIDU, DD, X, DOW, CAT, JOYG, FAST, FLS, FLIR, DE, STT, BDK, SPG, WHR, FSLR, ZION, BUCY, MRVL, AXP, AMAT, JEC, JCI, TXN, ADBE, HOLX, BAC, INTC, AGU, WLT, MA, V Potential Down Trend Setups: RIMM, AGCO, AMX, MON, MYGN, ORCL AAPL +3.78 QCOM +1.27 GOOG +6.05 BIDU +8.49 NDX 100 stocks stronger than the NDX: JOYG, GRMN, CSCO, STX, SBUX, NWSA, AKAM, VRTX, FWLT, JNPR, CTXS, MRVL, CA, QCOM, ADBE, INFY, XRAY, URBN, DTW, LBTYA, BBBY, EXPE, ADP, BRCM, ROST, SRCL, CTSH and BIDU. Stocks to Watch on Tuesday 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 = 8 BDX, CBST, CPLA, HLF, ICE, JEC, MHS, WCG Moving Below 30 DMA = 0 Staying Below 30 DMA DLTR, RIMM, ALGT, CHL, DLB, 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: Neutral