Stocks End Year With Support Bounce Continuation

DJIA + 108.00, +1.25% SP500 + 12.61, +1.42% NASDAQ Comp. + 26.33, +1.70% Russell 2000 + 16.68, +3.46% Exchange NYSE NASD Advancing 3,212 2,264 Declining 665 680 Oil $44.60 +$5.57 Gold $883.60 +$14.30 SOX 212.17 +0.91 VIX 40.00 -1.63 The VIX moved down confirming the rise in the SPX on Wednesday. (click images to enlarge)

Strongest Sectors: XLF +3.22%...XLI +2.40%...XLY +1.79% Weakest Sectors: XLV +0.91%...XLP +0.97%...XLE +1.06% Sector Watch Up Trending: Sideways: XLE, XLP, XLU, XLY, XLV, XLI, XLB, XLK, XLF Down Trending: All nine sector ETFs rose on Wednesday. XLF was the leading sector for the second straight day. Oil rose over 14% on the eve of when the OPEC production cuts were scheduled to occur. Watch to see if this is just a counter trend move or turns into a trend change. One news based view that I saw was that the market was up on Wednesday and the volume was low so that indicated no conviction. We stated on Monday of last week to expect volume to be low in the two holiday shortened weeks and to expect movement to shift back and forth between buyers and sellers. That is what happened. The low volume on Wednesday, oh yes and Tuesday and Monday and Friday are not evidence of lack of conviction, rather it is evidence that many traders took time off. Period. The broad indices are in sideways trends so expect them to bounce between support and resistance until they breakout of the trading range. Expect this to occur whether it happens on low or high volume. The market this week acted precisely consistent with a sideways trend and a low volume holiday shortened week. Period. The head and shoulders bottom in each of the four major indices indicates a potential move up over the month of January. On the DJIA that is a move to the 10,200 area. Of course a good trader knows that patterns give the more probable move and price target and that the less probable move can still occur. Dave's Insight: Technical analysis is about probabilities, not certainties. ProphetCharts

Stocks to Watch on Friday Leading Stocks: Holding Above 30 DMA AYE…PCLN…BAP…DLTR…FLR…JCOM…JEC…PCR…ATK…B…IRIS…SNA…WMS…HAS…JOSB…AMZN…BIIB…BYI…HDB…LFC…PSSI…CERN…FWLT…MTW…QSII…VMI…OI…FLS…BCO…NDAQ…ROST…VIVO…AET…UTX…APH…CAM…CCC…CIR…CL…DECK…DV…EPR…ESI…GES…GILD…JW.A…MYGN…NOV…ACL…BLUD…DNA…HLF…OSIP…AGN…KEX…LAYN…RCI…CELG…NEU…PSYS…RIO…SHW…AMED…PETS…SOHU…SPTN...BCR…CAM…FLIR…NGS…NOV…SPN…WAB…AFAM…CHTT…CTSH…FSTR…IIVI…K…MCRS…NIHD…PCP…SWN Moving Above 30 DMA = 6 AMX…CBST…HP…STRA…TECH…TEVA Moving Below 30 DMA = 3 ANSS…ESRX…GME Staying Below 30 DMA SWN…MMM…AME…GIS…PTNR…AXYS…MON…MTD…URBN…ICLR…LNN...AAPL…TECH…EZPW…MOS…POT…PPD…RTN…SINA…WCG…MBT…PRGO…RIMM…NILE…PPD…CHU Wednesday’s Action Moving Up: MA, PCLN, FSLR, PNRA, STRA, GS, ZION, CF, V, SOHU, AGU, NDAQ, AEM, GDX, KRE, IPI, MS, MON, KMT, KBE Moving Down: ESRX, HANS Intermediate Term Market Trend: Neutral – DJIA, SPX, Nasdaq, RUT Short Term Market Trend: Up