Friday, September 3, 2010

SPX...Three White Soldiers...Closes 1,104...Highest Since Aug. 10...

DJIA                10,447.93   +127.83   +1.24%
SP500               1,104.61     +14.41   +1.32%
COMPQ             2,233.75     +33.74   +1.53%
Russell 2000         643.36     +11.10   +1.76%

Exchange          NYSE        NASD
Advancing         2,356          2,041
Declining              651            600


Oil              $74.34   -0.34
Gold      $1,248.20   -4.20
SOX           328.71  +5.39
VIX              21.31   -1.88

Index    Direction    Confirmation
VIX       Down           Yes – SPX
SOX      Up                Yes – COMPQ

Leading stocks on Friday included FAS, RVBD, GS, CREE, ZION, LVS, FFIV, CRUS, USD, UNG, GME, CSTR, AMD, RMBS, SNDK, URE, WHR, AKS, NDAQ, IPI, HANS, DOW, CAT, A, PCP, FCX, GMCR, VMW, VOD, NYX, DHR, ATI, BA, TIE, UNP, DLF, WFMI, AIV, ICE, BAC, FLS, CAN, X, PNC, LXK, SWK

All four broad indexes continue to move higher on Friday as did many individual stocks. The SPX, INDU and COMPQ moved above their 30 DMA for the first time since August 11.

Each of the broad indexes exceeded their breakout price targets listed below on Friday. We will now look to the next level of resistance as next price target.

INDU - large white candle breakout short term target 10,383
SPX - large white candle breakout short term target 1,091
COMPQ - large white candle breakout short term target 2,210
RUT - large white candle breakout short term target 638

All sectors moved higher for the third straight day with the largest gains in Financials, Industrials, Technology and Consumer Discretionary. Advancers led decliners 3.6 to 1 on the NYSE.  Friday was the indexes highest closing price since August 10.
Look at these Charts
(click image to enlarge)

On the weekly chart all four indexes formed a bullish engulfing pattern suggesting a support bounce continuation next week.
Look at these Charts
(click image to enlarge)

FFIV, LVS, VMW and BUCY all broke out of horizontal resistance on Friday creating an entry signal for breakout traders. UNP and URE not shown also broke out of horizontal resistance.
Look at these Charts
(click image to enlarge)
 
NFLX, DE, SWK and PCP are potential horizontal breakout setups to watch on Monday for a potential entry signal. VOD and UPS not shown, are also potential breakout setups to watch on Monday. 
Look at these Charts
(click image to enlarge)

Guidance:
SPX
Resistance: 1,100, 1,115, 1,130
Support: 1,086, 1,071, 1,056

We will look to see if buyers step in the market Monday after the end of the summer break or whether the buyers take a rest after a 55 point rise during the last three days of last week.


Look at Friday’s S1 and S2 levels as key short term support.

Look to enter bullish trades with a breakout of horizontal resistance or a bounce off support and a break above the high of the low day.

Wait to enter bearish setups with a new bounce down from resistance; bounce down from the 30 DMA or break of support.

The VIX fell -1.88 to 21.31, staying below the benchmark 25 level which increases the probability of stability and continuation of the support bounce.

The short term 3 day trend is up.
The three-month trend is neutral.
The twelve-month trend is up.

Continue to focus on and trade setups on the charts of the stocks you watch. Trade with the trend of the chart and follow your rules.

30 Dow stocks moved higher.
91 NDX 100stocks moved higher.
470 SP500 stocks moved higher.

AAPL    +6.60 – large white candle 30 DMA breakout
QCOM +0.36 – potential hanging man
GOOG  +7.12 – doji
BIDU    +1.69 – spinning top

NDX 100 stocks stronger than the NDX include: NIHD, WYNN, NVDA, SHLD, MCHP, GRMN, AMZN, GILD, AAPL, LINTA, EXPD, MICC, CSCO, ADSK, and CTSH.

Stocks weaker than the NDX: CHKP, GENZ, LOGI, ILMN, WCRX, JBHT, AKAM, FLEX, COST, INTU, SRCL, SYMC, EXPE and DISH.

Stocks to Watch on Tuesday
Holding Above 30 DMA
TLT, HANS, HLF, PCLN, RVBD, AGU, MCD, POT, FFIV, LVS, NFLX, VMW, CMG, NTES, CRM, TSL, CLF, FCX, SINA, SPG, UAUA, VOD, AIV, BUCY, CAM, DE, DHR, DLR, DOW, HSY, NYX, PCP, SWK, UNP, UPS, URE, WLT, WMT, A, BYI, FLS, GMCR, GR, HAS, IPI, JEC, LXK, UAUA
Moving Above 30 DMA = 11
AKS, BAC, CAT, CHL, DECK, FAS, FDX, ICE, RMBS, V, X
Moving Below 30 DMA = 0

Staying Below 30 DMA
FAZ, GES, CSTR, NDAQ, AMX, GME, GS, MA, SNDK, BA, CRUS, ACN, ATI, CREE, STI, TIE, UCO, USO, USD, PNC, SWN, ZION, UNG, WFMI, NETL, SKX, AMD, NTRI, ESI, MHS, WHR, VECO

Intermediate Term Market Trend: Neutral
Short Term Market Trend: Up

1 comment:

Anonymous said...

Dave:
Thanks so much for this site and all you efforts to educate and mentor us.
Gratefully
Robert
CANI_212