Markets Surge in Last 15 MInutes of Trading...

DJIA + 96.53, +1.15% SP500 + 12.31, +1.36% NASDAQ Comp. + 22.54, +1.29% Russell 2000 + 9.37, +1.90% Exchange NYSE NASD Advancing 2,181 1,927 Declining 770 845 Oil $66.31 +$1.23 Gold $978.80 +$17.30 SOX 271.31 +2.66 VIX 28.92 -2.75 The VIX moved down and did confirm the move up in the SPX on Friday. Strongest Sectors: XLB +2.99%...XLI +2.41%...XLE +1.87% Weakest Sectors: XLU +0.71%...XLK +1.09%...XLP +1.09% All nine sectors moved higher on Friday. Materials, Industrials, Energy, Financial, Healthcare and Consumer Discretionary were stronger than the SPX +1.36%. Financial stocks stronger than XLF +1.83%: PNC, RF, STT, NTRS, SPG, TRV, MS, WFC, IVZ, TROW, SCHW, AXP and ETFs UYG and FAS. Leading tech stocks stronger than XLK +1.09% include: YHOO, GLW, SYMC, MA, ADBE, AMT, MSFT, ORCL, GOOG, EBAY, IBM and QCOM. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK Sideways: XLE, XLV, XLF, XLP, XLI, XLY Down Trending: XLU SPX Key resistance levels: 930 = horizontal & 200 DMA 944 = January horizontal 962 = 161.8% Fib extension Key support levels: 913 = Friday’s S1 907 = Friday’s S2 899 = Thursday’s S1 875 = horizontal The SPX is within 9 points of its 200 DMA which is the closest that it has been to the key long term resistance level in over a year! This is significant and should the SPX be able to break through its 200 DMA would suggest higher levels for the current three month up trend. We originally posted the 3 month chart target listed for each index under Index Commentary on May 4, 2009. We have posted those numbers each day since and commented last Friday on that fact. Here’s why…the current three month trend is Up…the trend of the past four weeks is sideways also referred to as a consolidation. A consolidation that follows an up trend is generally resolved in the direction of the prior trend…in this case Up. Since that is the more likely outcome we have left those numbers posted so you would keep that bigger picture in mind. While those chart targets are only a probability and not a certainty, there is no technical indication on the chart since May 4 that those targets are unreachable. The four week trend is sideways and on Friday neared the 925 to 930 resistance area. A sideways trend will continue to bounce between support and resistance until it breaks either support or resistance. As price nears resistance you must be prepared for a potential bounce down or a potential breakout and then trade what actually occurs. On Monday keep your attention focused for either a bounce down or a breakout. Should a breakout occur next week we believe it will be supported by the financials which have been the strongest sector since the March low. (click image to enlarge) Index Commentary The DJIA formed a large white candle that closed above Wednesday’s R3 and above its 8,405 horizontal resistance…8,405 to 8,587 has bee a key resistance congestion zone…three month chart target 10,340…volume was 361 million shares, the second highest volume day of the past 14 trading days…closed above its 20, 30 and 50 DMA. The SPX formed a large white candle that closed above Wednesday’s R3 level…3 month chart target of 1,075…closed above its 20, 30 and 50 DMA. The Nasdaq had a new high close on Friday of 1,774.33 its highest close since November 4, 2008…while the Nasdaq is still in the area of horizontal resistance, the new high close carries bullish implications…3 month chart target of 2,065…closed above its 20, 30 50 and 200 DMA. The RUT formed a large white candle that confirmed Thursday’s hammer….3 month chart target 606…closed at its 20 DMA and above its 30 and 50 DMA. At the Open on Friday SPY – white spinning top at 200 DMA confirmed Thursday’s hammer +1.77% KOL – doji +2.81% FAS – white candle confirms hammer +5.60% CTV – white candle +5.34% JOYG – white spinning top close above horizontal resistance +4.17% STT – white candle breakout of horizontal resistance +3.94% X – white candle breakout of horizontal resistance, new high close +3.90% ADBE – white candle confirms hammer new high close +2.32% EL – white candle confirms hammer +2.00% WAB – white candle just below 30 DMA +1.94% OSG – black hanging man +1.81% TRLG – doji new high close just above horizontal resistance +1.01% USD – hanging man +0.96% STLD – hanging man at horizontal resistance +0.74% SHLD – black candle +0.16% ZION – doji -0.44% JNPR – spinning top -0.60% LEAP – hammer after gap down on news of stock offering -0.79% PWRD – hanging man, potential bearish harami -1.53% Stocks to Watch on Monday Leading Stocks Holding Above 30 DMA BIDU, CLB, ICE, VPRT, CTSH, BAP, CAM, GMCR, ATW, GR, EBAY, TRLG, FSLR, HDB, PCP, RIMM, WCG, UYG, HLF, AMX, MHS, K, PCLN, VAR, PCR, PPD, SWN, FLS, TDG, NIHD, RCI, ACN, JOYG, MUR, PSYS, CHL, MOS, DV, AXYS, BIIB, BYI, CPLA, SPWRA, SYNA, X, MCD, BDX, CBST, AAPL, AFAM, DLTR, ESRX, GES, GXDX, ORCL, RBN, USD, WRC, DECK, FAS, WMT Moving Above 30 DMA = 5 CPLA, JEC, MYGN, PWR, URE Moving Below 30 DMA = 0 Staying Below 30 DMA DV, APEI, DLB, ESI, HANS, JOSB, SNA, STRA, URE, MON, WAB, NTLS, AMED, PETS, SNHY, AMZN, EZPW, JW.A, JEC, PWR, ALGT, JCOM, NFLX, GME, GILD, GPRO, MYGN, SLGN, BKC, BLUD Intermediate Term Market Trend: Neutral Short Term Market Trend: Up