Futures Point to a Slightly Higher Open...

BMO – ES +1.50 and NQ +2.00 futures are slightly higher in pre-market trading pointing to a slightly higher open. AAPL +0.30, AMZN +0.90, GOOG +1.25 and BIDU +1.84 are up in pre-market trading.

If Tuesday’s breakout holds, the new Chart Signals price target on the SPX is 1,255 over about a nine week period.

Old resistance becomes new support is the operative for Wednesday. Prices broke through resistance on Tuesday proving that sellers were not yet willing to fully commit at January’s resistance level. Tuesday is now the high day. Watch to see if Wednesday’s trading is able to stay above Friday’s high of 1,153.41.

The Euro is up 5 pips in overnight trading. Oil is quoting up 67 cents in electronic trading. XLE is up 20 cents in pre-market trading.

SPY is up 26 cents in pre-market trading. XLF is up 5 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX. Remember XLF closed above horizontal resistance on Tuesday after trading in a sideways range since October…its breakout coinciding with the breakout of SPX as we have been saying in Chart Signals.

Follow your rules in any trading actions today. Be logical.

Look at these Charts

WLT, SPG, SBUX, ZION

SPX
Support = 1,150, 1,139
Resistance = 1,178

Trading Down: FUQI, DECK, SPG, FAZ
Trading Up: POT, MON, FAS, FCX, GS, BUCY, IPI, MOS, X, WLT, V, GMCR, USO, CAT, WFC, MCD, TSL, ALGT

At the Open on Wednesday
SPY –
QQQQ –
FAS –
X –
POT –
CREE –
UAUA –
SNDK –
AAPL –
ALGT –
ALTR –
NFLX –
RIMM –
STX –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
STT –
GMCR –
AGU –
IPI –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CF –
ACN –

Fed Leaves Rates Unchanged...SPX Joins RUT, COMPQ on Breakout...

DJIA 10,685.98 +43.83 +0.41%
SP500 1,159.46 +8.95 +0.78%
COMPQ 2,378.01 +15.80 +0.67%
Russell 2000 679.58 +5.17 +0.77%


Exchange NYSE NASD
Advancing 2,215 1,707
Declining 813 1,024


Oil $81.80 +2.00
Gold $1,122.20 +17.10
SOX 359.87 +9.44
VIX 17.69 -0.31

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

Strongest Sectors: XLB +1.47%…XLI +1.35%...XLF +1.22%
Weakest Sectors: XLV +0.28%...XLP +0.47%...XLY +0.75%

All nine sectors moved higher on Tuesday. Materials, Industrials, Financials, Utilities and Energy were stronger than the SPX +0.78%.

Sector Watch
Up Trending: XLY, XLI, XLP
Horizontal Breakout:
Sideways: XLF, XLE, XLU, XLB, XLK, XLV
Down Trending:

Key Resistance Levels
1,145 = 1,133 BO chart target – Dec 31 Low
1,155 = 1,119 BO chart target – Dec 23

Key Support Levels
1,125 - 1,133 = 1,075 BO chart target - Sep 08 Low
1,119 = December High

As expected the Fed left rates unchanged and perhaps unexpected stocks rose broadly with all nine sectors moving higher. The SPX broke through horizontal resistance following the RUT, COMPQ and Dow Transports which had already broken through horizontal resistance during the past two weeks.


Additionally, the INDU rose within 44 points of January’s high and the SOX was within 12 points of its January high.

Many individual stocks either bounced off support or broke through resistance on Tuesday.

Look at these Charts

(click image to enlarge)

Guidance:
The SPX broke through horizontal resistance making a new high close 1,159.46 while forming a larger white candle. If this breakout holds the SPX chart target is 1,255 over about 9 weeks.

The VIX closed lower and did confirm the higher close on Tuesday.

The RUT, COMPQ and Dow Transports moved higher above horizontal resistance. Tuesday is the new high day in the broad indexes

This week is quarterly triple witching expiration.

The short term 5-week trend is up.
The four-month trend is sideways with a horizontal breakout.
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 and follow your rules.

Adjust your stops according to your rules for up and down trending trades.

AAPL +0.61
QCOM +0.14
GOOG +2.02
BIDU -3.68
NDX 100 stocks stronger than the NDX include WYNN, LLTC, INTC, SBUX, NVDA, KLAC, LRCX, FWLT, FLEX, BRCM, MRVL, CHRW, MICC, JBHT, ALTR, APOL, STLD, MXIM, XLNX, EBAY, LOGI, STX, MCHP, AMAT, JOYG, ORLY, BIIB, CELG, CEPH, EXPD, CERN, PCLN, ROST, CTAS, AKAM, NTAP, SIAL, SHLD, CA, VRTX, INFY, FAST and IACI.

Stocks to Watch on Wednesday
Holding Above 30 DMA
CBST, DLB, NFLX, BA, UAUA, AGU, CAM, CREE, VPRT, WHR, WLT, BDX, CAT, GR, ICE, PCLN, PCP, SPG, SWK, UNP, USO, V, BAC, DE, DHR, ESI, URE, HANS, JEC, WMT, FAS, GES, GMCR, SNDK, TDG, USD, UYG, X, DECK, FUQI, MELI, POT, FLS, HDB, HLF, MHS, MYGN, VAR, CGA, IPI, FCX, ATI, MOS, WAB, GS, DOW, AMD, AMX, WFC, ATW, ACN, CEDC, MA, PWRD, ZION, BKC, MCD, ALGT, GME, SYNA, AMED, HEAT, WCG
Moving Above 30 DMA = 3
CHL, STT, K
Moving Below 30 DMA = 0

Staying Below 30 DMA
SWN, TSL, BYI, FAZ, UNG, MON

Intermediate Term Market Trend: Neutral = 4 months, Up = 11 month
Short Term Market Trend: Up

Futures Point to a Higher Open in Front of FOMC Announcement...

BMO – ES +3.00 and NQ +5.00 futures are slightly higher in pre-market trading pointing to a slightly higher open. AAPL -0.04, AMZN -0.13, GOOG -3.07 and BIDU +5.32 are mixed in pre-market trading.

The SP futures are higher this morning in front of the FOMC announcement at 2:15 pm EDT. Generally the market trades in a tight range in leading into an announcement and then volatility picks up close to the announcement. Looking at Monday afternoon’s rally and pre-market trading it appears that traders will hold the 1,150 resistance area before the announcement.

Patience is the operative for Tuesday. Prices rallied from Monday’s break of the low of the high day, indicating that sellers were not yet willing to fully commit to the downside and from these price levels and buyers have not given up on a breakout of resistance. Friday is still the high day. Watch to see if Tuesday trading is able to move higher than Friday’s high of 1,153.41.

Pre-market trading is light and mixed across the board.

The Euro is up 50 pips in overnight trading. Oil is quoting up 50 cents in electronic trading. XLE is up 20 cents in pre-market trading.

SPY is up 29 cents in pre-market trading. XLF is up 6 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX. Remember XLF is at horizontal resistance after trading in a sideways range since October…a breakout here will likely lead to a breakout of SPX.

Follow your rules in any trading actions today. Be logical.

Look at these Charts

(click image to enlarge)

SPX
Support = 1,139, 1,125 -1,133
Resistance = 1,150 – 1,153

Trading Down: V, FAZ
Trading Up: POT, FAS, FCX, GS, MOS, USO, X, MON, IPI, AGU, WMT, GES, CAT, STT, HANS, BAC, WFC, UAUA, UYG

At the Open on Tuesday
SPY –
QQQQ –
FAS –
X –
POT –
CREE –
UAUA –
SNDK –
AAPL –
ALGT –
ALTR –
NFLX –
RIMM –
STX –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
STT –
GMCR –
AGU –
IPI –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CF –
ACN –

The Ides of March...SPX Reverses Pullback at Midday...

DJIA 10,642.15 +17.46 +0.16%
SP500 1,150.51 +0.52 +0.05%
COMPQ 2,362.21 -5.45 -0.23%
Russell 2000 674.41 -2.18 -0.32%

Exchange NYSE NASD
Advancing 1,270 1,125
Declining 1,741 1,564

Oil $79.80 -1.44
Gold $1,105.10 +3.60
SOX 350.43 -4.94
VIX 18.00 +0.42

Index Direction Confirmation
VIX Up No – SPX
SOX Down Yes – COMPQ

Strongest Sectors: XLP +0.76%…XLV +0.66%...XLU +0.37%
Weakest Sectors: XLE -1.03%...XLY -0.12%...XLK -0.09%

Three of nine sectors moved higher on Monday. Consumer Staples, Healthcare, and Utilities were stronger than the SPX +0.05%.

Sector Watch
Up Trending: XLY, XLI, XLP
Horizontal Breakout:
Sideways: XLF, XLE, XLU, XLB, XLK, XLV
Down Trending:

Key Resistance Levels:
1,145 = 1,133 BO chart target – Dec 31 Low
1,155 = 1,119 BO chart target – Dec 23

Key Support Levels
1,125 - 1,133 = 1,075 BO chart target - Sep 08 Low
1,119 = December High

FOMC announcement on interest rate will be at 2:15 pm EDT on Tuesday.

Look at these Charts

(click image to enlarge)

Guidance:
The SPX continued to consolidate pulling back more than 8 points by midday when buyers moved the index higher to close at 1,150.51. Friday’s potential evening star pattern did not materialize, although Monday’s did form a potential hanging man pattern.

The VIX closed higher and did not confirm the slightly higher close on Monday.

The RUT and COMPQ closed lower.

The INDU and Dow Transports closed slightly higher.

Friday is still the high day. Monday’s pull back did break the low of the high day but buyers came in near the 1,139 support area.

The RUT, COMPQ and Dow Transports stayed above horizontal resistance and continue as technical evidence for a potential SPX breakout.

This week is quarterly triple witching expiration.

Stay prepared for either a bounce down or a breakout. If a breakout occurs the chart target will be 1,255 over about 9 weeks.

The short term 5-week 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 trade with the trend and follow your rules.

Adjust your stops according to your rules for up and down trending trades.

AAPL -2.78
QCOM -0.08
GOOG -16.36
BIDU +26.60
NDX 100 stocks stronger than the NDX include BIDU, HOLX, CTXS, BBBY, LINTA, EXPE, FAST, EBAY, ROST, ADP, ESRX, PAYX, CELG, ADBE, CA, ORCL, YHOO, VRSN, SRCL, JBHT, CSCO, URBN, SHLD, LIFE, FLEX, INFY, COST, CMCSA, ATVI, SBUX, ERTS, GENZ, FISV, SIAL, MICC, HSIC, CTAS, ADSK, APOL, RIMM, BIIB, GILD, PCAR, PDCO, CTSH and INTU.

Stocks to Watch on Tuesday
Holding Above 30 DMA
ALGT, CBST, DLB, NFLX, BA, UAUA, AGU, CAM, CREE, VPRT, WHR, WLT, BDX, CAT, GR, ICE, PCLN, PCP, SPG, SWK, UNP, USO, V, BAC, DE, DHR, ESI, URE, HANS, JEC, WMT, FAS, GES, GMCR, SNDK, TDG, USD, UYG, X, DECK, FUQI, MELI, POT, FLS, HDB, HLF, MHS, MYGN, VAR, CGA, IPI, FCX, ATI, MOS, WAB, GS, DOW, AMD, AMX, WFC, ATW, ACN, CEDC, MA, PWRD, ZION, BKC, MCD, ALGT, GME, SYNA, AMED, HEAT
Moving Above 30 DMA = 1
WCG
Moving Below 30 DMA = 2
SWN, TSL
Staying Below 30 DMA
CHL, STT, K, BYI, FAZ, UNG, MON

Intermediate Term Market Trend: Neutral = 4 months, Up = 11 month
Short Term Market Trend: Up

Futures Point to a Lower Open...

BMO – ES -2.50 and NQ -5.75 futures are lower in pre-market trading pointing to a lower open. AAPL -1.27, AMZN -0.82, GOOG -10.29 and BIDU +19.30 are mostly lower in pre-market trading.

The SP futures are lower this morning. Friday is the new high day. Many stocks are trading lower on light volume in pre-market trading. Watch for a potential break of the low of the high day and on the SPX the 1,139 support level, these are potential exit areas for some short term traders.

The Euro is down 60 pips in overnight trading. Oil is quoting down 42 cents in electronic trading. XLE is down 22 cents in pre-market trading.

SPY is down 16 cents in pre-market trading. XLF is down 7 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today. Be logical.

SPX
Support = 1,139, 1,125 -1,133
Resistance = 1,150

(click image to enlarge)

Trading Down: MA, ICE, FAS, FCX, CREE, BUCY, GS,SNDK, X, SWN, USO, BA, MOS, CAT, AGU, TSL, POT, V, IPI, WFC
Trading Up: WMT, FAZ, MCD

At the Open on Monday
SPY –
QQQQ –
FAS –
X –
POT –
CREE –
UAUA –
SNDK –
AAPL –
ALGT –
ALTR –
NFLX –
RIMM –
STX –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
STT –
GMCR –
AGU –
IPI –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CF –
ACN –

SPX Holds at 1,150 Resistance...

DJIA 10,624.69 +12.85 +0.12%
SP500 1,149.99 -0.25 -0.02%
COMPQ 2,367.66 -0.80 -0.03%
Russell 2000 676.59 -0.63 -0.09%

Exchange NYSE NASD
Advancing 1,683 1,216
Declining 1,356 1,477

Oil $81.24 -0.76
Gold $1,101.50 -6.50
SOX 355.37 -1.79
VIX 17.58 -0.48

Index Direction Confirmation
VIX Down No – SPX
SOX Down Yes – COMPQ

Strongest Sectors: XLI +0.66%…XLB +0.39%...XLY +0.28%
Weakest Sectors: XLV -0.75%...XLU -0.63%...XLF -0.38%
Five of nine sectors moved higher on Friday. Industrials, Materials, Consumer Discretionary, Consumer Staples and Energy were stronger than the SPX -0.02%.

Sector Watch
Up Trending: XLY, XLI, XLP
Horizontal Breakout:
Sideways: XLF, XLE, XLU, XLB, XLK, XLV
Down Trending:

Key Resistance Levels:
1,145 = 1,133 BO chart target – Dec 31 Low
1,155 = 1,119 BO chart target – Dec 23

Key Support Levels
1,125 - 1,133 = 1,075 BO chart target - Sep 08 Low
1,119 = December High

Ag-related stocks POT, MOS, IPI and AGU were market leaders on Friday.  UAUA, LCC and CAL also moved higher on Friday.

Guidance:

The SPX continued to consolidate making a new intra-day high on Friday while forming a spinning top that could turn into and evening star pattern on Monday.

The VIX closed lower and did not confirm the slightly lower close on Friday.

The RUT and COMPQ also closed less than a point lower.

(click image to enlarge)

The INDU, NDX and Dow Transports closed slightly higher.

(click image to enlarge)

Friday is the high day. The SPX continues to trade in the area of horizontal resistance and will ultimately bounce down or breakout. A short term pull back will be indicated by a break of the low of the high day, but keep in mind that the March 5 high of 1,139 is a short term support.

The RUT, COMPQ and Dow Transports stayed above horizontal resistance and continue as technical evidence for a potential SPX breakout.

This coming week is quarterly triple witching expiration for options and indexes.

Stay prepared for either a bounce down or a breakout. If a breakout occurs the chart target will be 1,255 over about 8 weeks.

The short term 3-week 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 trade with the trend and follow your rules.

Adjust your stops according to your rules for up and down trending trades.

AAPL +1.10
QCOM -0.15
GOOG -1.60
BIDU -3.86
NDX 100 stocks stronger than the NDX include PCAR, LINTA, MCHP, BBBY, EBAY, CTXS, SHLD, AKAM, FSLR, HANS, LOGI, SPLS, SIAL, VRTX, STLD, NIHD, PAYX, CHRW, RYAAY, GILD, ROST, CA, ILMN, SYMC, AAPL, COST, ADSK, HSIC, XLNX, FWLT, WYNN, DELL,NVDA, ISRG, ORLY, ALTR, STX, INTU, CHKP and FLIR.

Stocks to Watch on Monday
Holding Above 30 DMA
ALGT, CBST, DLB, NFLX, BA, UAUA, AGU, CAM, CREE, VPRT, WHR, WLT, BDX, CAT, GR, ICE, PCLN, PCP, SPG, SWK, UNP, USO, V, BAC, DE, DHR, ESI, URE, HANS, JEC, WMT, FAS, GES, GMCR, SNDK, TDG, USD, UYG, X, DECK, FUQI, MELI, POT, FLS, HDB, HLF, MHS, MYGN, VAR, CGA, IPI, FCX, ATI, MOS, WAB, GS, DOW, AMD, AMX, WFC, ATW, ACN, CEDC, MA, PWRD, ZION, BKC, MCD, SWN, ALGT, GME, SYNA, TSL
Moving Above 30 DMA = 2
AMED, HEAT
Moving Below 30 DMA = 2
CHL, STT
Staying Below 30 DMA
K, BYI, FAZ, UNG, MON, WCG

Intermediate Term Market Trend: Neutral = 4 months, Up = 11 month
Short Term Market Trend: Up

Futures Point to a Higher Open and Potential SPX Breakout...

BMO – ES +4.75 and NQ +4.75 futures are higher in pre-market trading pointing to a lower open. AAPL +1.80, AMZN +0.75, GOOG +6.31 and BIDU +4.49 are higher in pre-market trading.


The SP futures are higher this morning after trading in a narrow range through this entire week. Thursday is the new high day. If pre-market trading continues higher until the open it is likely the SPX will experience a breakout of the 1,150 resistance. If it does breakout out and successfully holds after the open, look for the index to move higher. A successful breakout would give the SPX a 1,255 price target over the next 8 weeks.

The Euro is up 74 pips in overnight trading. Oil is quoting up 80 cents in electronic trading. XLE is up 41 cents in pre-market trading.

SPY is up 49 cents in pre-market trading. XLF is up 13 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today. Be logical.

SPX
Support = 1,125 -1,133
Resistance = 1,150

Trading Down: NFLX, FAZ
Trading Up: POT, AGU, MOS, FAS, IPI, GS, MA, MON, BUCY, HANS, WLT, FCX, DE, X, CAT, SYNA, CREE, V, CGA, TSL, ICE, FUQI, GME, ZION, SNDK, BA, USO, GMCR, WMT, DOW, BAC

At the Open on Friday
SPY –
QQQQ –
FAS –
X –
POT –
CREE –
UAUA –
SNDK –
AAPL –
ALGT –
ALTR –
NFLX –
RIMM –
STX –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
STT –
GMCR –
AGU –
IPI –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CF –
ACN –

SPX at 1,150 Resistance...

DJIA 10,611.84 +44.51 +0.42%
SP500 1,150.24 +4.63 +0.40%
COMPQ 2,368.46 +9.51 +0.40%
Russell 2000 677.22 +2.29 +0.34%

Exchange NYSE NASD
Advancing 1,806 1,509
Declining 1,226 1,132

Oil $82.00 -0.08
Gold $1,108.00 +0.20
SOX 357.16 -0.88
VIX 18.06 -0.51

Index Direction Confirmation
VIX Down Yes – SPX
SOX Down No – COMPQ

Strongest Sectors: XLF +0.84%…XLV +0.79%...XLY +0.72%
Weakest Sectors: XLE -0.17%...XLP +0.18%...XLU +0.33%

Eight of nine sectors moved higher on Thursday. Financials, Healthcare, Consumer Discretionary and Materials were stronger than the SPX +0.40%.

Sector Watch
Up Trending: XLY, XLI, XLP
Horizontal Breakout:
Sideways: XLF, XLE, XLU, XLB, XLK, XLV
Down Trending:

Key Resistance Levels:
1,145 = 1,133 BO chart target – Dec 31 Low
1,155 = 1,119 BO chart target – Dec 23

Key Support Levels
1,125 - 1,133 = 1,075 BO chart target - Sep 08 Low
1,119 = December High

Guidance:
The SPX continued to consolidate making a new intra-day high and new closing high while forming a white candle and closing at 1,150.24. The RUT, COMPQ and Dow Transports stayed above horizontal resistance in a breakout continuation move.

Thursday is now the high day. The SPX continues to trade in the area of horizontal resistance and will ultimately bounce down or breakout. A short term pull back will be indicated by a break of the low of the high day, but keep in mind last Friday’s S1 at 1,131 and S2 at 1,125 as key short term support levels.

The RUT, COMPQ and Dow Transports are positive up trending technical evidence for a potential SPX breakout.

While the consolidation this week in the 1,130 to 1,150 area continued, stay prepared for either a bounce down or a breakout. If a breakout occurs the chart target will be 1,255 over about 8 weeks.

The short term 3-week 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 trade with the trend and follow your rules.

Adjust your stops according to your rules for up and down trending trades.

AAPL +0.66
QCOM +0.22
GOOG +4.69
BIDU +4.93
NDX 100 stocks stronger than the NDX include HOLX, ATVI, FSLR, AMZN, ILMN, PPDI, CTXS, HANS, RIMM, TEVA, ORCL, ROST, PDCO, CTAS, BIDU, LIFE, MCHP, GOOG, SPLS, LOGI, MSFT, BRCM, ESRX, MICC, HSIC, CERN, GRMN, CHKP, EXPD,QCOM, PCLN, AKAM, NTAP and URBN.

Stocks to Watch on Friday
Holding Above 30 DMA
ALGT, CBST, DLB, NFLX, BA, UAUA, AGU, CAM, CREE, VPRT, WHR, WLT, BDX, CAT, GR, ICE, PCLN, PCP, SPG, SWK, UNP, USO, V, BAC, DE, DHR, ESI, URE, HANS, JEC, WMT, FAS, GES, GMCR, SNDK, TDG, USD, UYG, X, DECK, FUQI, MELI, POT, FLS, HDB, HLF, MHS, MYGN, VAR, CGA, IPI, FCX, ATI, MOS, WAB, GS, DOW, AMD, AMX, WFC, ATW, HEAT, ACN, CEDC, MA, PWRD, ZION, BKC, MCD, SWN, ALGT

Moving Above 30 DMA = 4
CHL, GME, SYNA, TSL
Moving Below 30 DMA = 1
AMED
Staying Below 30 DMA
HEAT, K, BYI, FAZ, UNG, MON, WCG

Intermediate Term Market Trend: Neutral = 4 months, Up = 11 month
Short Term Market Trend: Up

Futures Point to a Lower Open...

BMO – ES -4.50 and NQ -8.00 futures are lower in pre-market trading pointing to a lower open. AAPL -0.80, AMZN -0.15, GOOG -2.21 and BIDU -1.42 are lower in pre-market trading.


The SP futures are lower this morning after trading in a narrow range through the first three days of this week. Wednesday is the new high day and lower trading could be an exit for some short term traders. Also stay prepared for a potential horizontal breakout which has already occurred on the RUT and COMPQ.

After reaching horizontal resistance on Friday it appears consolidation will continue again this morning. The SPX is consolidating in the 1,130 to 1,150 resistance as it did in January, watch Friday’s S1 level which is 1,131 and S2 level which is 1,125. These are the key short term support levels.

The Euro is down 17 pips in overnight trading. Oil is quoting down 70 cents in electronic trading. XLE is down 28 cents in pre-market trading.

SPY is down 38 cents in pre-market trading. XLF is down 6 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today. Be logical.

SPX
Support = 1,125 -1,133, 1,119
Resistance = 1,138 to 1,150

Trading Down: MA, BUCY, POT, FAS, FCX, GS, X, V, DE, MOS, SWN, CAT, UAAU
Trading Up: DECK, GMCR, NFLX, WLT, K, ZION, CHL, BKC, FAZ, FUQI, SNDK, CREE, BAC

At the Open on Thursday
SPY –
QQQQ –
FAS –
X –
POT –
CREE –
UAUA –
SNDK –
AAPL –
ALGT –
ALTR –
NFLX –
RIMM –
STX –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
STT –
GMCR –
AGU –
IPI –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CF –
ACN –

SPX Inches Higher...As RUT and COMPQ Move Above Resistance...

DJIA 10,567.33 +11.86 +0.03%
SP500 1,145.61 +5.16 +0.45%
COMPQ 2,358.95 +18.27 +0.78%
Russell 2000 674.93 +5.30 +0.79%


Exchange NYSE NASD
Advancing 2,051 1,752
Declining 990 967


Oil $82.08 +0.59
Gold $1,107.80 -14.20
SOX 358.04 +7.57
VIX 18.57 +0.65

Index Direction Confirmation
VIX Up No – SPX
SOX Up Yes – COMPQ

Key Resistance Levels:

1,145 = 1,133 BO chart target – Dec 31 Low
1,155 = 1,119 BO chart target – Dec 23

Key Support Levels
1,125 - 1,133 = 1,075 BO chart target - Sep 08 Low
1,119 = December High

Dave taught the second day of an Advanced Technicals workshop to an energetic and highly focused group of 200 traders in Chicago today. It was a fantastic experience for Dave and the traders asked dozens of great questions throughout the two day workshop.  All in attendence seemed to have a great learning experience.
 
Guidance:

The SPX continued to consolidate making a new intra-day high and new closing high while forming a white candle and closing at 1,145.461. The RUT and COMPQ moved higher above horizontal resistance in a breakout continuation move.

Wednesday is now the high day. The SPX continues to trade in the area of horizontal resistance and will ultimately bounce down or breakout. A short term pull back will be indicated by a break of the low of the high day, but keep in mind Friday’s S1 at 1,131 and S2 at 1,125 as key short term support levels.



The RUT and COMPQ breakouts holding above resistance is creating more up trending technical evidence increasing the potential for a SPX breakout. A significant number of NDX 100 stocks experience 1% to 3% gains today indicating increasing strength.

While we are seeing a consolidation of this week in the 1,130 to 1,150 area stay prepared for either a bounce down or a breakout.

The short term 3-week 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 trade with the trend and follow your rules.

Adjust your stops according to your rules for up and down trending trades.

AAPL +1.82

QCOM +0.20
GOOG +16.26
BIDU +10.07
NDX 100 stocks stronger than the NDX include FSLR, BRCM, NIHD, AKAM, SBUX, SHLD, VRTX, MICC, NTAP, BIDU, MRVL, ALTR, INTU, BIIB, VRSN, CTXS, CHKP, MCHP, DISH, ROST, ILMN, PCLN, XLNX, CTSH, CEPH, ADSK, FLEX, GOOG, LLTC, LINTA, LRCX, RIMM, APOL, MXIM, AMAT, JOYG, WYNN, ADP, YHOO, SYMC, JBHT, FWLT, AMZN, URBN, ORLY, KLAC, INTC, FISV, EXPD, BBBY, ERTS and CTAS.

Stocks to Watch on Thursday
Holding Above 30 DMA
CBST, DLB, NFLX, AMED, BA, UAUA, AGU, CAM, CREE, VPRT, WHR, WLT, BDX, CAT, GR, ICE, PCLN, PCP, SPG, SWK, UNP, USO, V, BAC, DE, DHR, ESI, URE, HANS, JEC, WMT, FAS, GES, GMCR, SNDK, TDG, USD, UYG, X, DECK, FUQI, MELI, POT, FLS, HDB, HLF, MHS, MYGN, VAR, CGA, IPI, FCX, ATI, MOS, WAB, GS, DOW, AMD, AMX, WFC, ATW, HEAT, ACN, CEDC, MA, PWRD, ZION, BKC, MCD, SWN
Moving Above 30 DMA = 1
ALGT
Moving Below 30 DMA = 1
HEAT
Staying Below 30 DMA
K, SYNA, TSL, BYI, CHL, FAZ, UNG, MON, WCG, GME

Intermediate Term Market Trend: Neutral = 4 months, Up = 11 month
Short Term Market Trend: Up

Futures Point to a Flat Open...

BMO – ES +0.00 and NQ +1.75 futures are slightly higher in pre-market trading pointing to a flat to slightly higher open. AAPL +1.09, AMZN +0.18, GOOG -0.17 and BIDU +5.80 are mostly higher in pre-market trading.

The SP futures are flat this morning after trading in a narrow range again on Tuesday. Tuesday is the new high day and lower trading could be an exit for some short term traders. Also stay prepared for a potential horizontal breakout.

After reaching horizontal resistance on Friday it appears consolidation will continue again this morning. If the SPX consolidates in the 1,130 to 1,150 resistance as it did in January, watch Friday’s S1 level which is 1,131 and S2 level which is 1,125. These are the key short term support levels.

The Euro is up 3 pips in overnight trading. Oil is quoting up 25 cents in electronic trading. XLE is up 3 cents in pre-market trading.

SPY is up 5 cents in pre-market trading. XLF is up 6 cents in pre-market trading after closing up on Tuesday suggesting strength for the second straight day. Remember XLF is also near horizontal resistance and a breakout could lead to a breakout in the SPX similar to July. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today. Be logical.

Dave is teaching the second day of an Advanced Technicals workshop in Chicago today.

SPX
Support = 1,125 -1,133, 1,119
Resistance = 1,138 to 1,150

Trading Down: GMCR, FAZ, WMT, UNG
Trading Up: FAS, BUCY, GS, GR, HDB, FCX, AGU, X, WLT, MOS, WFC, POT, UAUA

At the Open on Wednesday
SPY –
QQQQ –
FAS –
X –
POT –
CREE –
UAUA –
SNDK –
AAPL –
ALGT –
ALTR –
NFLX –
RIMM –
STX –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
STT –
GMCR –
AGU –
IPI –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CF –
ACN –

SPX Forms Spinning Top at Horizontal Resistance...

DJIA 10,564.38 +11.86 +0.11%
SP500 1,140.45 +1.95 +0.17%
COMPQ 2,340.68 +8.47 +0.36%
Russell 2000 669.63 +2.52 +0.38%

Exchange NYSE NASD
Advancing 1,749 1,474
Declining 1,318 1,161

Oil $81.49 -0.38
Gold $1,122.00 -1.60
SOX 350.47 -0.74
VIX 17.92 +0.13

Index Direction Confirmation
VIX Up No – SPX
SOX Down No – COMPQ

Strongest Sectors: XLI +0.81%…XLK +0.45%...XLF +0.33%
Weakest Sectors: XLB -0.63%...XLY -0.16%...XLP -0.15%

Three of nine sectors moved higher on Tuesday. Industrials, Technology and Financials were stronger than the SPX +0.17%.

Sector Watch
Up Trending: XLY, XLI, XLP
Horizontal Breakout:
Sideways: XLF, XLE, XLU, XLB, XLK, XLV
Down Trending:

Key Resistance Levels:
1,145 = 1,133 BO chart target – Dec 31 Low
1,155 = 1,119 BO chart target – Dec 23

Key Support Levels
1,125 - 1,133 = 1,075 BO chart target - Sep 08 Low
1,119 = December High
1,105 - 1,113 = November High
1,101 = October High

Guidance:
The SPX continued to consolidate making a new intra-day high and new closing high while forming a spinning top and closing at 1,140.45.

Tuesday is now the high day. The SPX continues to trade in the area of horizontal resistance and will ultimately bounce down or breakout. A short term pull back will be indicated by a break of the low of the high day, but keep in mind Friday’s S1 at 1,131 and S2 at 1,125 as key short term support levels.

While we may see a consolidation of several days in the 1,130 to 1,150 area stay prepared for either a bounce down or a breakout.

The short term 3-week 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 trade with the trend and follow your rules.

Adjust your stops according to your rules for up and down trending trades.

Dave taught an Advanced Technicals workshop to 200 traders in Chicago today.

AAPL +3.94
QCOM -0.11
GOOG -2.29
BIDU +4.77
NDX 100 stocks stronger than the NDX include NVDA, AKAM, EBAY, FWLT, CTXS, AAPL, AYMC, WCRX, LINTA, ERTS, VRTX, TEVA, PCAR, URBN, SBUX, DELL, ADP, WYNN, JOYG, GILD, XRAY, BIDU, ILMN, CHKP, INTC, DISH, PAYX, NIHD, GRMN, ORCL, SPLS and MSFT.

Stocks to Watch on Wednesday
Holding Above 30 DMA
ALGT, CBST, DLB, NFLX, AMED, BA, UAUA, AGU, CAM, CREE, VPRT, WHR, WLT, BDX, CAT, GR, ICE, PCLN, PCP, SPG, SWK, UNP, USO, V, BAC, DE, DHR, ESI, URE, HANS, JEC, WMT, FAS, GES, GMCR, SNDK, TDG, USD, UYG, X, DECK, FUQI, MELI, POT, FLS, HDB, HLF, MHS, MYGN, VAR, CGA, IPI, FCX, ATI, MOS, WAB, GS, DOW, AMD, AMX, WFC, ATW, HEAT, ACN, CEDC, MA, PWRD, ZION, BKC, MCD
Moving Above 30 DMA = 1
SWN
Moving Below 30 DMA = 1
ALGT
Staying Below 30 DMA
K, SYNA, TSL, BYI, CHL, FAZ, UNG, MON, WCG, GME

Intermediate Term Market Trend: Neutral = 4 months, Up = 11 month
Short Term Market Trend: Up

Futures Point to a Lower Open...

BMO – ES -4.50 and NQ -5.25 futures are lower in pre-market trading pointing to a low open. AAPL -0.58, AMZN -1.13, GOOG -2.38 and BIDU +0.17 are mostly lower in pre-market trading.


The SP futures are slightly lower this morning after trading in a narrow range on Monday. Monday is the new high day and lower trading on Tuesday morning could be an exit for some short term traders.

After reaching horizontal resistance on Friday it appears consolidation will continue this morning. If the SPX consolidates in the 1,130 to 1,150 resistance as it did in January, watch Friday’s S1 level which is 1,131 and S2 level which is 1,125. These are the key short term support levels.

PCLN totally recovered from its recent counter trend move.

The Euro is down 70 pips in overnight trading. Oil is quoting down 1.42 in electronic trading. XLE is down 52 cents in pre-market trading.

SPY is down 47 cents in pre-market trading. XLF is down 7 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today. Be logical.

Dave is teaching an Advanced Technicals workshop in Chicago today.

SPX
Support = 1,125 -1,133, 1,119
Resistance = 1,138 to 1,150

Trading Down: FAS, FCX, X, WLT, USO, GS, POT, BKC, CAT, V, MON
Trading Up: HDB, JEC, UAUA, FAZ, BA

At the Open on Tuesday
SPY –
QQQQ –
FAS –
X –
POT –
CREE –
UAUA –
SNDK –
AAPL –
ALGT –
ALTR –
NFLX –
RIMM –
STX –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
STT –
GMCR –
AGU –
IPI –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CF –
ACN –

SPX Forms Doji and COMPQ Rises...

DJIA 10,552.52 -13.68 -0.13%
SP500 1,138.50 -0.20 -0.02%
COMPQ 2,332.21 +5.86 +0.25%
Russell 2000 667.11 +1.09 +0.16%


Exchange NYSE NASD
Advancing 1,797 1,457
Declining 1,257 1,249


Oil $81.87 +0.37
Gold $1,123.60 -11.20
SOX 351.21 -0.32
VIX 17.79 +0.37

Index Direction Confirmation
VIX Up Yes – SPX
SOX Down No – COMPQ

Strongest Sectors: XLK +0.54%…XLY +0.25%...XLF +0.20%
Weakest Sectors: XLV -0.59%...XLI -0.47%...XLP -0.36%

Three of nine sectors moved higher on Monday. Technology, Consumer Discretionary, Financials, Materials and Utilities were stronger than the SPX -0.02%.

Sector Watch
Up Trending: XLY, XLI, XLP
Horizontal Breakout:
Sideways: XLF, XLE, XLU, XLB, XLK, XLV
Down Trending:

Key Resistance Levels:
1,145 = 1,133 BO chart target – Dec 31 Low
1,155 = 1,119 BO chart target – Dec 23

Key Support Level
1,125 - 1,133 = 1,075 BO chart target - Sep 08 Low
1,119 = December High
1,105 - 1,113 = November High
1,101 = October High

Guidance:
The SPX experienced consolidation forming a doji and closing at 1,138.50.

Monday is now the high day. The SPX has risen to the area of horizontal resistance and will either bounce down or breakout. A short term pull back will be indicated by a break of the low of the high day, but keep in mind Friday’s S1 at 1,131 and S2 at 1,125 as key short term support levels.

While we may see a consolidation of several days in the 1,130 to 1,150 area stay prepared for either a bounce down or a breakout.

The short term 3-week 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 trade with the trend and follow your rules.

Adjust your stops according to your rules for up and down trending trades.

AAPL +0.13
QCOM +0.03
GOOG -1.73
BIDU +13.58
NDX 100 stocks stronger than the NDX include RIMM, CSCO, YHOO, BIDU, STLD, PCLN, CTAS, WYNN, NTAP, ROST, GRMN, IACI, BRCM, URBN, DELL, ERTS, AMZN, SHLD, DISH, AKAM, EBAY, CTXS, JBHT, BIIB, CMCSA, ATVI, JOYG, LRCX, AMGN, FWLT, HOLX, AMAT, INFY, PAYX and FISV.

Stocks to Watch on Tuesday
Holding Above 30 DMA
ALGT, CBST, DLB, NFLX, AMED, BA, UAUA, AGU, CAM, CREE, VPRT, WHR, WLT, BDX, CAT, GR, ICE, PCLN, PCP, SPG, SWK, UNP, USO, V, BAC, DE, DHR, ESI, URE, HANS, JEC, WMT, FAS, GES, GMCR, SNDK, TDG, USD, UYG, X, DECK, FUQI, MELI, POT, FLS, HDB, HLF, MHS, MYGN, VAR, CGA, IPI, FCX, ATI, MOS, WAB, GS, DOW, AMD, AMX, WFC, ATW, HEAT, ACN, CEDC, MA, PWRD, ZION
Moving Above 30 DMA = 2
BKC, MCD
Moving Below 30 DMA = 3
K, SYNA, TSL
Staying Below 30 DMA
BYI, CHL, FAZ, UNG, SWN, MON, WCG, GME

Intermediate Term Market Trend: Neutral = 4 months, Up = 11 month
Short Term Market Trend: Up

Futures Point to a Flat Open...

9:40 am ET - GMCR is breaking out...

BMO – ES +1.50 and NQ +2.50 futures are slightly higher in pre-market trading pointing to a flat to slightly open. AAPL +1.30, AMZN -0.91, GOOG +0.49 and BIDU +1.37 are mostly higher in pre-market trading.

The SP futures are holding near Friday’s close after breaking out and reaching its short term target of 1,138.

After reaching horizontal resistance some consolidation is likely. If the SPX consolidates in the 1,130 to 1,150 resistance area as it did in January, watch Friday’s S1 level which is 1,131 and S2 level which is 1,125. These are the key short term support levels. Remember Friday is the high day.

Our counter trend virtual trade short in PCLN on Wednesday was closed on Thursday after reaching its target of 231.45 for a gain of 7.20…As I pointed out on Wednesday in our life webcast…a counter trend trade requires a quick exit and no hoping that it will continue to go down when it starts moving back in the direction of the trend…that’s why we did the bracket sell order. PCLN closed at 235.34 on Friday, which is up almost $4 from our pre-determined exit price.

The Euro is up 22 pips in overnight trading. Oil is up 22 cents in electronic trading. XLE is up 8 cents in pre-market trading.

SPY is down 1 cent in pre-market trading. XLF is up 3 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today. Be logical.

SPX
Support = 1,125 -1,133, 1,119
Resistance = 1,138 to 1,150

Trading Down: MYGN, UNG, FAZ
Trading Up: X, POT, BUCY, ICE, HDB, CREE, MOS, MCD, FCX, MON, FAS, MA, GS, NFLX, WLT, ALGT, BA, DECK, CHLE, TSL, CAT

Look at these Charts…

(click image to enlarge)

At the Open on Monday
SPY –
QQQQ –
FAS –
X –
POT –
CREE –
UAUA –
SNDK –
AAPL –
ALGT –
ALTR –
NFLX –
RIMM –
STX –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
STT –
GMCR –
AGU –
IPI –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CF –
ACN –

SPX Hits 1,138 Target...Believe It or Not...

DJIA 10,566.20 +122.06 +1.17%
SP500 1,138.70 +15.73 +1.40%
COMPQ 2,326.35 +34.04 +1.48%
Russell 2000 666.02 +13.55 +2.08%


Exchange NYSE NASD
Advancing 2,587 2,165
Declining 483 557


Oil $81.50 +1.29
Gold $1,134.80 +2.20
SOX 351.53 +4.98
VIX 17.42 -1.30

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

Strongest Sectors: XLF +1.94%…XLE +1.87%...XLY +1.86%
Weakest Sectors: XLP +0.62%...XLU +1.01%...XLK +1.23%

All nine sectors moved higher on Friday. Financials, Energy, Consumer Discretionary and Industrials were stronger than the SPX +1.40%.

Sector Watch
Up Trending: XLY, XLI, XLP
Horizontal Breakout:
Sideways: XLF, XLE, XLU, XLB, XLK, XLV
Down Trending:

Key Resistance Levels:
1,145 = 1,133 BO chart target – Dec 31 Low
1,155 = 1,119 BO chart target – Dec 23

Key Support Levels
1,125 - 1,133 = 1,075 BO chart target - Sep 08 Low
1,119 = December High
1,105 - 1,113 = November High


The SPX rose to its 1,112 breakout target, that we pointed out earlier in the week, of 1,138 on the point!  Once again a definite reinforcement of why I have taught this technique more emphatically over the past several years that anyone else I know.  It works over and over and over again.  100% of the time?  No, nothing works 100% of the time. 

Dave's Insight:  Technical analysis is about probabilities, not certainties.

Look at these Charts...

(click image to enlarge)

The SPX have reached it's 1,138 chart target puts it right back in the 1,130 to 1,150 area of resistance that it reached in January.  At resistance price can bounce down or breakout.  If a trader interprets the current trend as sideways, then the greater probability is for it to bounce down from resistance.  A bounce down does not have to occur in one day.  Just look at January to prove that point.  If this is like the bounce off the July bullish divergence low then don't be surprised to see a breakout to occur.  Either way traders should be prepared for either outcome.  The case for a breakout includes the RUT which is already above resistance and the COMPQ at resistance and hitting a new high close of 2,326.35 on Friday. 

Economically the Unemployment report on Friday was better than expected which could be a reason why big money may decide to continue to buy at these levels this time around.  A little discussed hiring index that measures the strength of hiring across 269 industries reached 48 in February, up from 44.2 in January and at 16.5 in March 2009.  A reading above 50 indicates more industries are hiring than laying off workers.  Perhaps another reason big money may choose not to sell.  Either way watch the chart for the bounce down or breakout.

(click image to enlarge)

The support bounce rally over the past four weeks following the bullish divergence in February has been sector led by XLY, which includes retail stocks, XLI, which includes airlines and other transportation stocks and XLP.  The swing sector looks once again to be XLF, financial stocks which have had a strong rally moving all the way from support to resistance.  If XLF breaks out of horizontal resistance then expect the SPX to have a higher probability of breaking out.  Remember back it July it was the lead and breakout of its sideways trading range by XLF that gave the strength to the SPX breakout.

(click image to enlarge)

The rally and breakout in AAPL and other leading NASDAQ stocks like AKAM, SNDK and XLNX has been another major factor in the rally of the past four weeks.  Many stocks have broken out of horizontal resistance, while others have had strong moves towards resistance and still others are mid-way between support and resistance.

(click image to enlarge)

Guidance:
The SPX made a new high close at 1,138.70.

Friday is now the high day. The SPX has risen to the area of horizontal resistance and will either bounce down or breakout. A bounce down will be indicated by a break of the low of the high day.

While we may see a consolidation of several days in the 1,130 to 1,150 area stay prepared for either a bounce down or a breakout.

The short term 3-week 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 trade with the trend and follow your rules.

Adjust your stops according to your rules for up and down trending trades.

AAPL +8.24

QCOM -0.49

GOOG +9.62

BIDU -3.03

NDX 100 stocks stronger than the NDX include AAPL, NWSA, LINTA, WCRX, FWLT, EBAY, ADP, AKAM, LOGI, NVDA, DISH, WYNN, JOYG, SHLD, PAYX, GRMN,SIDAL, INFY, PPDI, NTAP, LIFE,IACI, CTSH, CERN, STLD, PCAR, APOL, JBHT, SBUX, LBTYA, XLNX, URBN, LLTC, ERTS, HOLX, GOOG, ALTR, YHOO and DELL.

Stocks to Watch on Monday

Holding Above 30 DMA

ALGT, CBST, DLB, NFLX, AMED, BA, UAUA, AGU, CAM, CREE, VPRT, WHR, WLT, BDX, CAT, GR, ICE, PCLN, PCP, SPG, SWK, UNP, USO, V, BAC, DE, DHR, ESI, URE, HANS, JEC, WMT, FAS, GES, GMCR, SNDK, TDG, USD, UYG, X, DECK, FUQI, MELI, POT, FLS, HDB, HLF, MHS, MYGN, VAR, CGA, IPI, FCX, ATI, MOS, WAB, GS, DOW, AMD, AMX, WFC, ATW, HEAT, TSL, ACN

Moving Above 30 DMA = 6

CEDC, K, MA, PWRD, SYNA, ZION

Moving Below 30 DMA = 0

Staying Below 30 DMA

BKC, BYI, CHL, MCD, FAZ, UNG, SWN, MON, WCG, GME

Intermediate Term Market Trend: Neutral = 4 months, Up = 11 month

Short Term Market Trend: Up

Futures Point to a Higher Open After a Better Than Expectec Unemployment Report...

2:25 pm ET - The SPX is at 1,137 nearing the 1,138 chart target...You should have had a great day today if you follow the Chart Signals!

9:55 am ET - Last night in my Thursday Talk I emphasized "trend is the most important factor in every trade."  I explained that too many traders get distracted by price fluctuation or opinions, etc. and as a result they don't let trend make them money.  I also shared four or five dozen charts that had bull flag setups or other bullish setups on them.  I reiterated that the SPX chart indicated a target of 1,138 and the SPY chart a target of 114.20...I am hoping this morning that you stayed with this trend and that you are having one heck of a great morning...

BMO – ES +7.00 and NQ +11.50 futures are mixed in pre-market trading pointing to a flat open. AAPL +4.69, AMZN +0.67, GOOG +6.21 and BIDU -4.78 are near even in pre-market trading.


The SP futures are breaking out to a higher high in pre-market trading moving towards the short term target of 1,138.
The Unemployment rate remained at 9.7% as business cut just 36,000 jobs in February, better than expected. Job loss was less than expected as forecasts were for the unemployment rate to rise to 9.8%.

Our counter trend virtual trade short in PCLN on Wednesday was closed in just one day for over a $7 profit as it hit our bracket order target of 231before bouncing. It looks to open higher this morning.

The Euro is down 18 pips in overnight trading. Oil is quoting up 1.00 in electronic trading. XLE is up 57 cents in pre-market trading.

SPY is up 78 cents in pre-market trading. XLF is up 10 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today. Be logical.

SPX
Support = 1,119, 1,105 – 1,113
Resistance = 1,125 -1,133

Trading Down: MYGN, FAZ
Trading Up: PCLN, POT, FAS, AGU, GMCR, GS, IPI, X, CAM, WLT, FCX, BUCY, K, ATI, BA, PWRD, CAT, V, MOS, ICE, SNDK, MON, CREE, USO, TSL, MCD, SYNA, HEAT, ACN, SWN

Look at these Charts…

(click image to enlarge)

At the Open on Friday
SPY –
QQQQ –
FAS –
CF –
UAUA –
SNDK –
DOW –
X –
CREE –
ALGT –
ALTR –
NFLX –
RIMM –
BA –
STX –
DE –
WHR –
ZION –
STT –
GMCR –
IPI –
SHLD –
BUCY –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
POT –
AGU –
ACN

SPX Inches Higher in Front of Unemployment Report...

DJIA 10,444.14 +47.38 +0.46%
SP500 1,122.97 +4.18 +0.37%
COMPQ 2,292.31 +11.63 +0.51%
Russell 2000 652.47 +3.21 +0.49%

Exchange NYSE NASD
Advancing 1,787 1,563
Declining 1,260 1,102

Oil $79.97 -0.24
Gold $1,132.60 -6.40
SOX 346.55 +0.18
VIX 18.72 -0.11

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

Strongest Sectors: XLF +1.01%…XLY +0.91%...XLB +0.68%
Weakest Sectors: XLE -0.52%...XLV -0.32%...XLU +0.20%

Seven of nine sectors moved higher on Thursday. Financials, Consumer Discretionary, Materials, Industrials and Technology were stronger than the SPX +0.37%.

Sector Watch
Up Trending: XLK, XLY, XLV, XLI
Horizontal Breakout:
Sideways: XLF, XLE, XLU, XLP, XLB
Down Trending:

Key Resistance Levels:
1,125 - 1,133 = 1,075 BO chart target - Sep 08 Low
1,145 = 1,133 BO chart target – Dec 31 Low

Key Support Levels
1,119 = December High
1,105 - 1,113 = November High
1,101 = October High

Stocks gained on Thursday after the Jobless Claims report before the market open. Retail stocks were particularly strong. Five of the six top NDX 100 gainers were retailers: ROST, URBN, SHLD, AMZN, SPLS

Look at these Charts…

(click image to enlarge)

Guidance:

The two shooting stars from Tuesday and Wednesday did not confirm on Thursday. The SPX made a new high close at 1,122.97.

Wednesday is still the high day. The charts indicate the SPX is likely to continue its short term up trend, continue to watch for a potential break of the low of the high day on Friday.

Watch for the market reaction to the Unemployment Report on Friday morning before the open.

The short term 3-week 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, trade with the trend and follow your rules.

With a breakout on Monday, intermediate term stops can be moved under last Thursday’s low.

Adjust your stops according to your rules for up and down trending trades.

AAPL +1.38

QCOM +0.56
GOOG +9.27
BIDU +6.76
NDX 100 stocks stronger than the NDX include VRSN, ROST, URBN, SHLD, AMZN, SPLS, GOOG, TEVA, YHOO, NWSA, QCOM, DTV, BIDU, CMCSA, IACI, EBAY, CHKP, ORCL, STLD, EXPE, HANS, MRVL, FLEX, CTAS, BBBY, INTU, ORLY, AAPL, MSFT, ATVI, LINTA, AKAM, STX, EXPD and PCAR.

Stocks to Watch on Friday
Holding Above 30 DMA
ALGT, CBST, DLB, NFLX, AMED, BA, UAUA, AGU, CAM, CREE, VPRT, WHR, WLT, BDX, CAT, GR, ICE, PCLN, PCP, SPG, SWK, UNP, USO, V, BAC, DE, DHR, ESI, URE, HANS, JEC, WMT, FAS, GES, GMCR, SNDK, TDG, USD, UYG, X, DECK, FUQI, MELI, POT, FLS, HDB, HLF, MHS, MYGN, VAR, CGA, IPI, FCX, ATI, MOS, WAB, GS, DOW, AMD, AMX, WFC, ATW, HEAT, TSL
Moving Above 30 DMA = 1
ACN
Moving Below 30 DMA = 2
BKC, BYI
Staying Below 30 DMA
CHL, CEDC, MCD, SYNA, ZION, PWRD, FAZ, K, MA, UNG, SWN, MON, WCG, GME

Intermediate Term Market Trend: Neutral = 4 months, Up = 11 month
Short Term Market Trend: Up

Futures Point to a Flat Open...

BMO – ES +0.50 and NQ -0.75 futures are mixed in pre-market trading pointing to a flat open. AAPL -0.18, AMZN +0.00, GOOG +0.03 and BIDU +0.48 are near even in pre-market trading.


The SPX formed a shooting star on again on Wednesday which is the high in this short term trend of the past 3 plus weeks. Short term traders be on alert for a break of the low of the high day.

The SPX could be simply pausing to see the Jobs Claims report which will be out before the market open this morning and the Unemployment Report Friday morning. We’ll see if the Jobs report gets the market moving before the open.

Our virtual trade short in PCLN on Wednesday looks to open significantly lower this morning.

The Euro is down 33 pips in overnight trading. Oil is quoting down 2 cents in electronic trading. XLE is unchanged in pre-market trading.

SPY is up 8 cents in pre-market trading. XLF is unchanged in pre-market trading. Watch XLF as a key to any sustained move in the SPX.

Follow your rules in any trading actions today. Be logical.

SPX
Support = 1,105 – 1,113
Resistance = 1,119, 1,125 -1,133

Trading Down: PCLN, CHL, FAS, USO, UNG
Trading Up: ICE, TSL, DECK, BUCY, V, MOS, HDB, X, SPG, GS, FAZ

At the Open on Thursday
SPY –
QQQQ –
FAS –
CF –
UAUA –
SNDK –
DOW –
X –
CREE –
ALGT –
ALTR –
NFLX –
RIMM –
BA –
STX –
DE –
WHR –
ZION –
STT –
GMCR –
IPI –
SHLD –
BUCY –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
POT –
AGU –
ACN –

DJIA 10,396.76 -9.22 -0.09%
SP500 1,118.79 +0.48 +0.04%
COMPQ 2,280.68 -0.11 -0.00%
Russell 2000 649.26 +0.95 +0.15%


Exchange NYSE NASD
Advancing 1,648 1,427
Declining 1,376 1,253

Oil $80.87 +1.19
Gold $1,139.00 +2.10
SOX 349.39 -3.02
VIX 18.83 -0.23

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

Strongest Sectors: XLB +0.87%…XLE +0.44%...XLY +0.29%
Weakest Sectors: XLV -0.41%...XLU -0.17%...XLP +0.04%

Seven of nine sectors moved higher on Wednesday. Materials, Energy, Consumer Discretionary, Industrials,
Financials and Technology were stronger than the SPX +0.04%.

Sector Watch
Up Trending: XLK, XLY, XLV, XLI
Horizontal Breakout:
Sideways: XLF, XLE, XLU, XLP, XLB
Down Trending:

Key Resistance Levels:
1,119 = December High
1,125 - 1,133 = 1,075 BO chart target - Sep 08 Low

Key Support Levels
1,105 - 1,113 = November High
1,101 = October High

Guidance:

Upward momentum slowed down for the second straight day as the SPX reached a new intra-day high of 1,125.64 before sellers appeared around mid-day driving the SPX down 6 ½ points to a 1,118.79 close.

This may simply be the pause that refreshes but with two shooting stars in a row short term traders need to be mindful of a potential pull back. Wednesday is the new high day. Continue to watch for a potential break of the low of the high day on Thursday.

On the other hand traders may simply be bidding time (the pause that refreshes) until the Jobless Claims report on Thursday morning and the Unemployment Report on Friday morning before the open.

The short term 3-week 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, trade with the trend and follow your rules.

With a breakout on Monday, intermediate term stops can be moved under last Thursday’s low.

Adjust your stops according to your rules for up and down trending trades.

AAPL +0.48
QCOM +0.76
GOOG +4.26
BIDU -1.86

NDX 100 stocks stronger than the NDX include JOYG, PCAR, NIHD, GRMN, AKAM, APOL, ILMN, FWLT, QCOM, DISH, SIAL, MICC, ATVI, STLD, CTXS, PAYX, PPDI, CMCSA, CSCO, URBN, CTAS, LOGI, GOOG, FLEX, SYMC, NTAP, FAST, ADSK, ERTS, ISRG, VRSN, FSLR, ROST, VRTX, FISV, ESRX, AMZN, INTU, ADBE and AAPL.

Stocks to Watch on Thursday
Holding Above 30 DMA
ALGT, CBST, DLB, NFLX, AMED, BA, UAUA, AGU, CAM, CREE, VPRT, WHR, WLT, BDX, CAT, GR, ICE, PCLN, PCP, SPG, SWK, UNP, USO, V, BAC, DE, DHR, ESI, URE, HANS, JEC, WMT, FAS, GES, GMCR, SNDK, TDG, USD, UYG, X, DECK, FUQI, MELI, POT, FLS, HDB, HLF, MHS, MYGN, VAR, CGA, IPI, FCX, ATI, BKC, MOS, WAB, GS, DOW, AMD, AMX, WFC
Moving Above 30 DMA = 4
ATW, BYI, HEAT, TSL
Moving Below 30 DMA = 5
CHL, CEDC, MCD, SYNA, ZION
Staying Below 30 DMA
PWRD, FAZ, K, MA, ACN, UNG, SWN, MON, WCG, GME

Intermediate Term Market Trend: Neutral = 4 months, Up = 11 month
Short Term Market Trend: Up