SPX Breaks High of the Low Day...

DJIA + 112.08, +1.18% SP500 + 15.25, +1.49% COMPQ + 20.04, +0.99% Russell 2000 + 10.91, +1.88% Exchange NYSE NASD Advancing 2,538 1,964 Declining 521 730 Oil $70.41 +$0.46 Gold $1,016.70 +13.50 SOX 313.09 +6.50 VIX 26.84 -1.84 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 +3.15%...XLE +2.21%...XLI +2.05% Weakest Sectors: XLP +0.24%...XLV +0.64%...XLK +0.84% All nine sectors moved higher on Monday. Financials, Energy, Industrials, Materials and Consumer Discretionary were stronger than the SPX +1.49%. Financial stocks stronger than XLF +3.15%: WFC, PRU, JPM, PNC, MET, ICE, GS, BAC, C, TROW and ETFs UYG and FAS. Tech stocks stronger than XLK +0.84%: AMT, HPQ, GLW SYMC, EMC, QCOM, CSCO, EBAY and T. Sector Watch Up Trending: XLK, XLB, XLY, XLV Horizontal Breakout: XLF Sideways: XLE, XLP, XLI, XLU Down Trending: Key Resistance Levels: 1,044 = October Horizontal Old Resistance 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 1,025 = 950 Breakout Chart Target 1,017 = Aug 27 Support Low 1,007 = November 2008 Horizontal Resistance The SPX bounced up from its 50 DMA and closed above its 30 DMA breaking the high of the low day which was Friday. We alerted you in Friday’s Guidance to watch for this on Monday. If you did so you were in a position to profit from Monday’s bounce in the SPX and many individual stocks. Many doji, spinning tops, inverted hammers and hammers were confirmed on Monday as well as the formation of many morning star patters. Think about the negative jobs report on Friday, five minutes of down movement after the open and a follow through support bounce on Monday. Can you now see why I teach market action is not about economic releases? That these are noise and seldom alter the intermediate term trend? Learn from these real time situations as they occur. Guidance: The intermediate term trend is still up with a support bounce and momentum shifting to up on Monday. On Tuesday watch for support bounce continuation and a break of the high of the low day on stocks that did not quite break out on Monday. Breakout: ISRG Potential Breakout Setups: HANS Pulling Back: AMZN, APOL, FSLR Potential C Patterns: ADSK C Pattern Breakout: Flag Setups and Bounces in Progress: LVS, FCX, CAM, DOW, JOYG, PCLN, WYNN, BA, AKAM, WHR, BUCY, FWLT, BIDU, CAT, FLS, FLIR, MRVL, XLNX, JCG, DE, BDK, JEC, JCI, AGU, HOLX, NWSA, DD, X, FAST, STT, SPG, ZION, AXP, ADBE, BAC, INTC, WLT Potential Down Trend Setups: TXN, RIMM, AGCO, AMX, MON, MYGN, ORCL, MA, V AAPL +1.12 QCOM +0.50 GOOG +3.94 BIDU +6.68 NDX 100 stocks stronger than the NDX: STLD, JOYG, STX, URBN, WCRX, NTAP, LBTYA, CTXS, CTSH, SHLD, INFY, KLAC, XLNX, LRCX, LIFE, FWLT, GRMN, CHRW, NWSA, MXIM, ILMN, JNPR, CA, FAST, NIHD, BIDU, ADSK, SYMC and BRCM. Stocks to Watch on Tuesday Leading Stocks Holding Above 30 DMA CTSH, AAPL, PETS, PCLN, TDG, PCP, CLB, ESRX, NTLS, NIHD, K, FLS, GXDX, BAP, GME, PWRD, WRC, BIDU, HDB, JW.A, ATW, EZPW, JOYG, TRLG, GPRO, PPD, DECK, VPRT, AMZN, GMCR, ACN, SLGN, FSLR, NFLX, HANS, DV, ESI, STRA, MCD, CPLA, HLF, SWN Moving Above 30 DMA = 6 AFAM, AMED, CAM, GES, ICE, UYG Moving Below 30 DMA = 2 APEI, FAZ Staying Below 30 DMA SPWRA, EBAY, BDX, BIIB, BKC, GILD, JCOM, JOSB, RCI, VAR, SNHY, FAS, USD, URE, FUQI, JEC, MHS, WAB, X, CBST, RBN, WCG, DLTR, RIMM, ALGT, CHL, DLB, MUR, PSYS, BLUD, GR, MYGN, PWR, SNA, SYNA, MOS, AMX, BYI, ORCL, WMT, MON Intermediate Term Market Trend: DJIA = Neutral, Nasdaq, RUT, SPX = Up Short Term Market Trend: Neutral