Consolidation with Just Two Trading Days Left...

DJIA - 1.67 -0.02% SP500 - 1.58 -0.14% COMPQ - 2.68 -0.12% Russell 2000 - 0.57 -0.09% Exchange NYSE NASD Advancing 1,491 1,341 Declining 1,531 1,358 Oil $78.76 -0.01 Gold $1,097.00 -10.20 SOX 356.18 -1.46 VIX 20.01 +0.08 The VIX moved up and did confirm the move down in the SPX on Tuesday. The SOX moved down and did confirm the move down in the COMPQ. Strongest Sectors: XLY +0.33%…XLI +0.28%...XLP +0.19% Weakest Sectors: XLE -0.66%...XLF -0.41%...XLK -0.13% Four of nine sectors moved higher on Monday. Consumer Discretionary, Industrials, Consumer Staples, Materials, Utilities, Healthcare and Technology were stronger than the SPX -0.14%. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE Horizontal Breakout: XLF, XLI, XLU Sideways: Down Trending: Key Resistance Levels: 1,025 - 1,133 = 1,075 BO chart target - Sep 08 Low Key Support Levels 1,119 = December High 1,105 - 1,113 = November High 1,101 = October High 1,087 = Nov 10 Channel low 1,082 = Nov 9 S1 level1,075 = 875 Breakout Chart Target

Upward momentum paused for another day on Tuesday as all four broad indexes were down a fraction of a percent. The SPX reached a high of 1,130.38 for the second straight day but gave back the gains as XLF again turned negative and finished the day down 6 cents. So we’ll watch on Wednesday to see if the recent rally resumes for the last two days of the year or if the congestion of the past two days continues. The question is still: Is this the pause that refreshes or the beginning of a short term pull back? Several strong trending stocks have pulled back more than the broad indexes are forming some nice bull flag patterns. Check out these charts: (click image to enlarge)

Guidance: Stay with your up trending positions. Raise your stops. Look for the intermediate term trend to continue. XLF continues to be the key to the SPX breakout following through to the upside. Be prepared if a pause that refreshes continues or pull back occurs. Remember this is a holiday shortened week with just two days of trading left. Stay with trends that have broken above resistance and watch for bull flag pull backs to resume their intermediate term up trend. Continue to focus on and trade setups on the charts of the stocks you watch and follow your rules.

AAPL -2.51 QCOM +0.39 GOOG -3.47 BIDU -4.66 NDX 100 stocks stronger than the NDX include: NWSA, FLIR, CEPH, ROST, PDCO, DISH, NVDA, LBTYA, LRCX, LOGI,QCOM, GRMN, CHRW, MSFT, ILMN, CTAS, URBN, FSLR, JBHT, INTC, GILD, GENZ, VRTX, ADSK, PPDI, BIIB, YHOO, FISV, HANS, HSIC, VRSN, ORCL, SIAL, ADP and ERTS. Check out these Breakout and BO Setup Charts: (click image to enlarge) Stocks to Watch on Wednesday Leading Stocks Holding Above 30 DMA JW.A, DLB, WCG, ALGT, BDX, TSL, AFAM, GR, SNHY, SYNA, MELI, PCLN, PCP, MON, TDG, X, BIIB, NTLS, PETS, NIHD, VPRT, URE, BLUD, GES, GPRO, USD, BKC, CBST, SNA, FSLR, CPLA, MYGN, RIMM, AMED, CLB, DV, ORCL, GXDX, HANS, PPD, SWN, CAM, MHS, CTSH, WAB, ESI, ESRX, ICE, JEC, MOS, TRLG, MCD, UYG, VAR, AMZN, AAPL, JOSB, RBN, ACN, BAP, DECK, EBAY, K, RCI, SLGN, FAS, ATW Moving Above 30 DMA = 1 WMT Moving Below 30 DMA = 3 DLTR, IPI, PSYS Staying Below 30 DMA AMX, JOYG, CGA, FAZ, HLF, WMT BIDU, GILD, HDB, BYI, JCOM, PWRD, GME, CHL, FLS, FUQI Intermediate Term Market Trend: Up Short Term Market Trend: Up