SPX Moves Higher...

DJIA 10,392.90 +83.66 +0.81% SP500 1,106.75 +7.24 +0.66% COMPQ 2,241.71 +15.42 +0.69% Russell 2000 629.32 +4.49 +0.72% Exchange NYSE NASD Advancing 2,112 1,562 Declining 936 1,083 Oil $79.06 +0.82 Gold $1,118.00 -1.50 SOX 342.52 +0.98 VIX 20.63 -1.09 Index Direction Confirmation VIX Down Yes – SPX SOX Up Yes – COMPQ Strongest Sectors: XLB +1.07%…XLI +0.91%...XLK +0.64% Weakest Sectors: XLV +0.48%...XLU +0.55%...XLE +0.56% All nine sectors moved higher on Thursday. Materials and Industrials were stronger than the SPX +0.66%. Sector Watch Up Trending: XLK, XLY, XLV, XLI Horizontal Breakout: Sideways: XLF, XLE, XLU, XLP, XLB Down Trending: Key Resistance Levels: 1,101 = October High 1,105 - 1,113 = November High 1,119 = December High Key Support Levels 1,087 = Nov 10 Channel low 1,082 = Nov 9 S1 level 1,075 = 875 Breakout Chart Target 1,044 - 1,050 = Oct 08 High The SPX, INDU and COMPQ moved above their 30 DMA. The SPX closed at 1,106 just above its 1,105 horizontal resistance area, Many individual stocks like CREE, CTXS, GILD, NFLX and STX also experienced horizontal breakouts. PCLN +9.43% gapped and moved higher after better than forecast earnings report. After the close on Thursday, DELL -0.84, -5.88% reported earnings with lower than expected profit margins. Many tech stocks were trading lower in after-hours trading in sympathy with the report. The Fed announced after the close they are raising the discount rate to banks by ¼% from 0.50% to 0.75% effective Friday. While this is actually positive news as it reflects improvement in the financial stability of banks, the S&P futures market reacted by moving 12 points lower. This could lead to a lower open on Friday, February options expiration day. Here’s a closing look at our Thursday stock charts SNDK, DOW, STX and CGA from this morning

Check out these charts: (click image to enlarge) Guidance: Today is the new high day in the recent support bounce. Continue to watch the S1 level of Tuesday’s large white candle as short term support on the SPX.

Watch for a lower open on Friday as an initial reaction to the Fed increasing the discount rate. Follow your rules if the pull back breaks short term support. The short term trend is up. The four-month trend is sideways. The twelve-month trend is up. Continue to focus on and trade setups on the charts of the stocks you watch and follow your rules. If you have not yet been stopped out of your up trending positions, continue to trade the trend and raise your stops. AAPL +0.37 QCOM +0.38 GOOG +5.01 BIDU +10.08 NDX 100 stocks stronger than the NDX include PCLN, EXPE, DTV, STX, CTXS, ADBE, STLD, HANS, FLEX, GRMN, JOYG, DELL, BIDU, LINTA, MXIM, URBN, XLNX, FSLR, GILD, CA, APOL, MICC, NIHD, AMZN, ALTR, ORCL, CELG, INTU, RIMM, FAST, DISH, VRTX, FWLT, CTAS, CERN, ESRX, SYMC, HOLX, ISRG and QCOM. Stocks to Watch on Thursday Holding Above 30 DMA ALGT, CBST, DLB, NFLX, AMED, CHL, BA, GMCR, MCD, UAUA, AGU, BKC, CAM, CEDC, CREE, VPRT, WHR, WLT, POT, BDX, BUCY, CAT, GR, ICE, MOS, PCLN, PCP, SPG, SWK, TSL, UNP, USD, USO, V, BAC, DE, DECK, DHR, ESI, MHS, SNDK, URE, VAR Moving Above 30 DMA = 6 DOW, FLS, GES, HANS, JEC, MELI Moving Below 30 DMA = 4 AMX, FAZ, WMT, ZION Staying Below 30 DMA K, MYGN, TDG, WFC, MA, BYI, ACN, UNG, FAS, HLF, SYNA, UYG, X, ATW, HDB, GS, HEAT, FCX, FUQI, IPI, SWN, WAB, PWRD, AMD, CGA, MON, WCG, GME Intermediate Term Market Trend: Neutral = 4 months, Up = 11 month Short Term Market Trend: Up