Stocks Move Higher...Nasdaq, RUT Breakout...

DJIA + 168.78, +2.11% SP500 + 18.48, +2.16% NASDAQ Comp. + 38.13, +2.28% Russell 2000 + 18.63, +3.94% Exchange NYSE NASD Advancing 3,109 2,125 Declining 634 631 Oil $50.97 +$1.05 Gold $899.80 +$7.00 SOX 251.55 +4.88 VIX 36.08 -1.87 The VIX moved down and did confirm the move up in the SPX on Wednesday. Strongest Sectors: XLF +4.31%...XLI +3.34%...XLE +2.76% Weakest Sectors: XLV +0.37%...XLU +0.74%...XLK +1.12% All nine Sectors moved higher on Wednesday. Financial was again the leading sector. Financial stocks stronger than XLF +4.31% include: MS, IVZ, PRU, C, MET, BK, BAC, ZION, USB, SCHW, AFL, GS, SPG, JPM, TROW, MMC and ETFS UYG and FAS. Leading tech stocks stronger than XLK, +1.12% include: MA, ADBE, DELL, CSCO, HPQ, YHOO, AMT, TXN, ADP, EMC, IBM, GOOG, INTC, QCOM, SYMC, EBAY, MSFT and AMAT. Sector Watch Up Trending: Sideways: XLE, XLY, XLV, XLK, XLB Down Trending: XLF, XLP, XLI, XLU We wrote last night, “…a potential exits for Wednesday to resume the move to the upside. If the indices move up on Wednesday this would be from Tuesday’s higher low compared with April 21, which could provide the support base for the SPX to break above the 875 resistance.” That is what occurred on Wednesday, a break above 875 with a late pull back with the SPX closing at 873. The Nasdaq did close above resistance and made a new high close along with a new 2009 high. Take a look at the chart below and see the Nasdaq’s relative strength. The RUT closed above resistance with a strong move up. The breakout of these two leading indexes suggests a continuation of the current up trend. There will continue to be pause or pull back days, perhaps very similar to what the market has produced since March 10. Take a look at these YTD Index Charts...What do you notice about the Nasdaq and RUT compared with the SPX and DJIA? (click image to enlarge)

Index Commentary The DJIA formed a large white candle…closed at 8,190 horizontal resistance…new high close…volume was below average at 300 million shares…closed above its 20, 30 and 50 DMA. The SPX formed a large white candle that broke above 875 horizontal resistance intraday and closed just below…new high close since Jan 29…closed above its 20, 30 and 50 DMA. The Nasdaq formed a large white candle making a new high close for 2009…broke and closed above horizontal resistance of 1682…short term chart price target is 1,765…closed above its 20, 30 and 50 DMA. The RUT formed a large white candle following Tuesday’s piercing line pattern…broke through horizontal resistance of the past two weeks and late January and early February resistance…new chart target 606 during next 8+ weeks…within 30 points of 2009 high …closed above its 20, 30 and 50 DMA

At the Open on Thursday SPY – white candle ALGT – large white candle in bull flag SCHN – bull flag breakout ICE – white candle confirm inverted hammer at 20 DMA DECK – spinning top support bounce SNDA – large white candle support bounce at 20 DMA ADBE – bull flag break high of low day and horizontal resistance EBAY – white spinning top in pennant GME – spinning top close below 200 DMA SHLD – white spinning top at 200 DMA WYNN – bull flag breakout WHR – breakout after day pull back LEAP – large white candle does not confirm potential bearish harami ISRG – bull flag breakout DHR – bull flag breakout DE – two week ascending triangle

Learn the Discipline We opened 12 new positions in BYI, GR, CAM SYNA, ATW, SNA, AG, ADS, ADBE, ALGT, LEAP and ISRG in the Model Portfolio. We also took a short term SP futures position. Stocks to Watch on Thursday Leading Stocks Holding Above 30 DMA BIDU, CLB, ICE, ALGT, DLB, PWR, VPRT, AMZN, USD, AAPL, CTSH, AXYS, BAP, CAM, GMCR, JCOM, JOSB, ATW, GR, SYNA, EBAY, GES, SNA, ORCL, WRC, HDB, PCP, UYG, FSLR, GME, WCG, RIMM, X, BYI, CBST, HLF, AMX, MHS, WAB, FAS, AFAM, JW.A, K, RBN, ESRX, PCLN, URE, VAR, PCR, PPD, HANS, SWN, FLS, SNHY, GILD, GXDX, TDG, NIHD, RCI, STRA, CPLA, ACN, AMED, DLTR, GPRO, NFLX, EZPW Moving Above 30 DMA = 5 JOYG, MON, MUR, PSYS, SPWRA Moving Below 30 DMA = 1 DECK Staying Below 30 DMA JEC, CHL, MCD, BDX, PETS, CBST, MYGN, DV, SLGN, TDG, BIIB, MOS, NTLS, WMT, GILD, BKC, APEI, BLUD, ESI, GXDX Intermediate Term Market Trend: Neutral Short Term Market Trend: Up