SPX...Second Highest Close for 2009...

DJIA + 61.29 +0.63% SP500 + 7.90 +0.75% COMPQ + 13.60 +0.64% Russell 2000 + 5.67 +0.94% Exchange NYSE NASD Advancing 2,205 1,548 Declining 819 1,151 Oil $71.69 +2.12 Gold $1,055.80 +12.00 SOX 316.06 -1.58 VIX 24.18 -0.50 The VIX moved down and did confirm the move up in the SPX on Thursday. The SOX moved down and did NOT confirm the move up in the COMPQ. Strongest Sectors: XLE +2.57%...XLB +2.34%...XLI +1.77% Weakest Sectors: XLU +0.00%...XLV +0.10%...XLF +0.13% Eight of nine sectors moved higher on Thursday. Energy, Materials, Industrials and Consumer Discretionary were stronger than the SPX +0.75%. Financial stocks stronger than XLF +0.13%: AXP, MS, NTRS, MME, USB, MET, AFL, SPG, STT, PRU, AOC, ALL, C and ETFs UYG and FAS. Tech stocks stronger than XLK +0.63%: ADBE, DELL, MSFT, EBAY, EMC, ADP, ORCL, INTC and GLW. 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 1,007 = November 2008 Horizontal Resistance The SPX rose to 1,070 before pulling back and closing at 1,065.48 breaking through the 1,056 resistance level and closing just above the 1,061 resistance. While AA pulled back from its open, the better than expected earnings was certainly a catalyst to buying and the upward momentum. Strength in Material, Industrial, Transportation, Gold and Oil stocks added to the strength in the indexes. Selling impacted the SPX as it reached the 1,070 resistance area where sellers kept the SPX from rising between September 17 to 23 and on September 29. This is exactly where we would expect sellers to appear. So once again the battle between sellers and buyers intensifies. Will sellers again win at the 1,070 level? Technology stocks like AAPL, QCOM, GOOG, BIDU and semiconductor stocks ended lower for the day and contributed to the NDX +0.43% being among the weakest indexes. Guidance: The intermediate term trend is still up as the support bounce regained momentum on Thursday. FCX, JOYG, AMZN and JCG broke out of horizontal resistance, while Wednesday’s leaders AAPL, PCLN, BIDU, GOOG and ISRG paused after their previous horizontal breakout. If indexes pause on Friday and price action stays above short term support levels that is bullish. Continue to take entry signals as they occur and follow your rules. Breakout: FCX, JOYG, AMZN, JCG, AAPL, PCLN, BIDU, GOOG Potential Breakout Setups: CAM, BUCY, HANS, FLS, APOL, AKAM, AMX, CAT, AGU, NWSA, STT, AXP Pulling Back: ISRG Potential C Patterns: C Pattern Breakout: ADSK Lower Close in Support Bounce: XLNX, ZION Flag Setups and Bounces in Progress: ADBE, LVS, BDK, WLT, WYNN, BA, FLIR, DE, DD, X, FAST, SPG, MA, V, DOW, FWLT, JCI, HOLX, BAC, INTC, FSLR, WHR Potential Down Trend Setups: JEC, MRVL, TXN, RIMM, AGCO, MON, MYGN, ORCL AAPL -0.98 QCOM -0.73 GOOG -3.36 BIDU -1.13 NDX 100 stocks stronger than the NDX: NTAP, CTXS, CERN, WYNN, JOYG, ADBE, ERTS, DELL, JBHT, FWLT, CAR, URBN, STLD, WCRX, NWSA, ATVI, MSFT, JNPR, FAST, RIMM, INFY, EBAY, LBTYA, EXPD, ADP, DISH, FLEX, XRAY, CELG, LRCX, APOL, CA, AMZN, KLAC, NIHD, HSIC, FSLR, FLIR, ORCL, STX and TEVA. Stocks to Watch on Friday Leading Stocks Holding Above 30 DMA CTSH, AAPL, PETS, PCLN, TDG, PCP, CLB, ESRX, NTLS, NIHD, K, FLS, GXDX, BAP, GME, 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, AFAM, AMED, CAM, GES, ICE, UYG, AMX, APEI, BLUD, EBAY, FAS, MUR, SPWRA, CHL Moving Above 30 DMA = 3 BYI, WAB, URE Moving Below 30 DMA = 2 WCG, PWRD Staying Below 30 DMA DLTR, PPD, FAZ, BDX, BIIB, BKC, GILD, JCOM, JOSB, RCI, VAR, SNHY, USD, FUQI, JEC, MHS, X, CBST, RBN, RIMM, ALGT, DLB, PSYS, GR, MYGN, PWR, SNA, SYNA, MOS, ORCL, WMT, MON Intermediate Term Market Trend: DJIA = Neutral, Nasdaq, RUT, SPX = Up Short Term Market Trend: Up