SPY Continues to Consolidate on Low Volume...MCP Jumps...

Five of nine sectors moved higher on Wednesday…XLY, XLV and XLB were the strongest sectors.

Breadth strengthened as advancers led decliners 1.53 to 1 on the NYSE and 1.51 to 1 on the Nasdaq…

Exchange      NYSE    NASDAQ

Advancers     1,778       1,467

Decliners       1,158          967

Wednesday Highlights:

SPY moved up 11 cents…closing at 141.51…volume was 65.4 million shares…the lightest volume day of 2012…

VIX up 0.57 at 17.06…

Euro down 35 pips at 1.2529…

TNX +0.24 at 16.54…

TLT down 55 cents at 125.29…

XLF up 3 cents at 15.13…

AAPL down 1.33 at 673.46…volume 7.2 million shares …

FB down 24 cents at 19.10… volume 16.1 million shares…

MCP +1.48, +13.77% on heavy volume 23.7 million shares...

The Market Forecast green line is in upper zone., +

Technical Commentary: The SPY moved sideways in a 77 cent range on Wednesday with trading volume of 65.4 million shares, the lowest volume of 2012. Volume continues to be below average this week, as we expected, going into the 3-day Labor Day weekend. The VIX up slightly and still near its lowest levels. The Euro pulled back slightly in its sideways consolidation.

Chart Targets: 

SPY = 143.10 S&R Measuring

ES = 1,425.75 S&R Measuring

Short-term support at

140.92, 139.80 = SPY

1,403, 1,387 = ES

2,750, 2,743, 2,700 = NQ

We'll look at Chart Setups on Thursday...

57of 100 NDX stocks closed higher on Wednesday…

Leading NDX 100 stocks included: WCRX, SHLD, CERN, PCLN, SPLS, MRVL, LIFE, FLEX, CHRW, FISV

Lagging NDX stocks included: BIDU, FSLR, RIMM, VRTX, INTC, GOLD, ADSK, ALXN, INFY, ORLY

Leading stocks > +2% on Wednesday included: MCP, SINA

Lagging stocks < -2.0% included: TSL, X, AKS, UCO

Stocks to Watch on Thursday…

Holding Above 30 DMA = 39

SLB, WDC, UCO, TPX, GS, JNPR, RVBD, SWI, CIEN, CROX, DHR, SMH, SWKS, VECO, CRUS, CREE, C, FAS, FCX, JDSU, NKE, RCL, STI, TBT, TIF, BAC, CDE, CRM, SINA, SOHU, F, AKS, DECK, ZION, ANF, INFA, ICE, LVS, LNKD, HUM, URE, COH, GLW, VECO

Moving Above 30 DMA = 1

V

Moving Below 30 DMA = 0

Staying Below 30 DMA

AKS, IBM, SWK, ATI, TSL, TSLA, X, ANR, GES, MOS, V, VMW, DE, HLF, LNKD, A, CHL, NTES, GRPN, ANR, CLF, DLR, TLT, ZAGG, FAZ, CMG, ESI, UAL, FB, CSTR, LDK, MCP

Twelve Week Intermediate Term Market Trend: Up

Short Term Market Trend: Neutral