SPX Holds Support and Rises...

DJIA + 63.94, +0.69% SP500 + 8.49, +0.85% NASDAQ Comp. + 16.13, +0.82% Russell 2000 + 6.66, +1.20% Exchange NYSE NASD Advancing 2,330 1,802 Declining 690 867 Oil $67.96 -0.09 Gold $995.80 +$19.20 SOX 301.65 +4.25 VIX 27.10 -1.80 The VIX moved down and did confirm the move up in the SPX on Thursday. The SOX confirmed the move up in the Nasdaq. Strongest Sectors: XLF +1.96%...XLB +1.44%...XLI +1.31% Weakest Sectors: XLV -0.46%...XLU -0.07%...XLP +0.20% Seven of nine sectors moved higher on Thursday. Financials, Materials, Industrials and Consumer Discretionary were stronger than the SPX +0.85%. Financial stocks that were down but stronger than XLF +1.96%: F, IVZ, C, BAC, WFC, JPM, MET, KEY, MS, SCHW, GS and ETFs UYG and FAS. Tech stocks stronger than XLK +0.46%: AMT, EMC, SYMC, ADBE, MA, AMAT, MSFT, GOOG, AAPL and GLW. Sector Watch Up Trending: XLK, XLB, XLY Horizontal Breakout: XLV Sideways: XLE, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 1,007 = Nov horizontal resistance 1,017 = August 21 S1 level 1,025 = 950 Breakout Chart target 1,044 = October horizontal 1,075 = 875 Breakout Chart target Key support levels: 992 - 996 = Early August Support Low 980 = July 23 Resistance - August 17 Support 962 = July 23 S1, 30 DMA, 38.2% Fib extension 944 – 956 = old January/June/July resistance The SPX traded higher after the open, pulled back to even and then moved up during the last hour of the day to close near its daily high. Volume on the DJIA was 168 million shares. AAPL, GOOG, MSFT and RIMM trading volume also dropped. The SPX rose from the 995 area of support to its 30 DMA at 1,003 Advancing issues increased on both the NYSE and NASDAQ. Gold rose another $19.20 and gold stocks soared: GDX +5.11%, AEM +6.33%, GG +3.80%, GOLD +7.10%, IAG +16.24% and NEM +4.50%. Guidance: The intermediate term trend is still up and short term trend is neutral. lLook for volume to be generally lighter on Friday heading into the three day Labor Day weekend. With support holding on Wednesday and Thursday watch for a move to resistance at Tuesday’s R1 level of 1,009 and then the 1,017 – 1,020 area. Failure to break the R1 level would form a lower high. Our two virtual trade orders on BDK and WHR from Monday’s night Advanced Technical webcast did NOT trigger their buy stops. Potential Down Trend Setups: ADSK, AKAM, AMAT, AMZN, APOL, FAST, FSLR Potential Lower Highs: DE, X, AGCO, DOW, JCI, JOYG, WYNN Flag Setups and Bounces in Progress: FLS, FWLT, WLT, AXP, BAC, BDK, HOLX, INTC, JEC, JCG, MA, MRVL, TXN, XLNX, ZION, CAT, DD, AGU, STT, SPG, ADBE, BIDU, FAST, HANS, NWSA Breakout in Progress: WHR AAPL +1.37 QCOM -0.40 GOOG +4.51 BIDU +4.62 Stocks to Watch on Friday Leading Stocks Holding Above 30 DMA PSYS, MHS, BYI, CTSH, AAPL, PETS, USD, JOSB, CAM, EBAY, PCLN, SNHY, TDG, SNA, CBST, WAB, BLUD, CLB, PCP, WMT, RBN, VAR, BKC, GR, CLB, BIIB, GES, HDB, ESRX, BDX, DLTR, NTLS, MYGN, ICE, NIHD, K, DV, FLS, GXDX, PSYS, WCG Moving Above 30 DMA = 15 APEI, BAP, ESI, FAS, FUQI, GME, HANS, JEC, PWR, PWRD, RCI, RIMM, WRC, MCD, UYG Moving Below 30 DMA = 1 AMED Staying Below 30 DMA EZPW, ORCL, AMX, HDB, ICE, JW.A, MON, EBAY, X, URE, CPLA, MUR, STRA, TRLG, AFAM, DECK, GPRO, JOYG, SLGN, ATW, BIDU, HLF, MOS, NFLX, SWN, CAN, VPRT, CHL, DLB, JCOM, SPWRA, AMZN, GMCR, PPD, ALGT, GILD, FSLR, SYNA, FAZ Intermediate Term Market Trend: SPX, DJIA, RUT = Neutral, Nasdaq = Up Short Term Market Trend: Neutral