Support Bounces Continues to Move Up...

DJIA + 172.54, +2.08% SP500 + 19.32, +2.14% NASDAQ Comp. + 37.20, +2.08% Russell 2000 + 14.23, +2.88% Exchange NYSE NASD Advancing 2,464 1,211 Declining 562 525 Oil $70.23 +$1.56 Gold $939.00 +$5.20 SOX 263.26 +5.18 VIX 26.36 -2.69 The VIX moved down and did confirm the move up in the SPX on Thursday. This is the lowest close on the VIX since September 12, 2008. Strongest Sectors: XLY +3.49%...XLI +3.08%...XLV +2.77% Weakest Sectors: XLK +1.45%...XLU +1.68%...XLP +1.72% All nine sectors moved higher on Thursday. Consumer Discretionary, Industrial, Healthcare, and Financials were stronger than the SPX +2.14%. Financial stocks stronger than XLF +2.15%: AXP, RF, AFL, WFC, ZION, BK and ETFs UYG and FAS. Tech stocks stronger than XLK +1.45%: GLW, EMC, ADBE, DELL, AAPL, HPQ, SYMC, QCOM, EBAY, CSCO, MA, IBM, TXN, ORCL, GOOG and AMAT. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY, XLE Sideways: XLV, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 920 - 930 = horizontal 944 – 956 = January/June horizontal 962 = 161.8% Fib extension Key support levels: 910 = Thursday’s S1 901 = 50 DMA 895 = 200 DMA 888 = weekly low 875 = horizontal

Downward momentum came to an end on Tuesday with the formation of a spinning top/bullish harami on the SPX. Wednesday's inverted hammer confirmed Tuesday's bullish harami as momemtum began to move up. Thursday upward momentum pushed through the R1 and R2 resistance levels of Monday's large black candle reversing 100% of Monday's drop and the SPX rose to its 920 resistance area.

Short term support is Thursday's S1 level at 910 and short term resistance is the 920-930 area.

Wednesday's support bounce stocks: GMCR, AMZN, CHL, MUR, AMX, CLB, WAB, EBAY and CTSH had strong continuation moves on Thursday. TDG and RCI paused and RIMM reversed and moved lower.

(click image to enlarge)

Index Commentary The DJIA moved formed a bullish engulfing pattern…closed above its 50 DMA…three month chart target 10,340…volume was a below average 222 million shares…closed below its 20, 30 and 200 DMA. The SPX large white candle that confirmed Wednesday’s inverted hammer…broke above its 30 and 50 DMA…3 month chart target of 1,075…closed above its 30, 50 and 200 DMA. The Nasdaq formed large white candle that confirmed its inverted hammer…broke above its 30 and 20 DMA…3 month chart target of 2,065…closed above its 20, 30, 50 and 200 DMA. The RUT formed large white candle that confirmed its inverted hammer…broke above its 50 and 30 DMA….3 month chart target 606…closed above its 30, 50 and 200 DMA. At the Open on Thursday SPY – bullish engulfing +2.18% QQQQ – bullish engulfing +1.97% FUQI – doji at 20 DMA -4.59% ESRX – horizontal breakout +2.43% DECK – bullish engulfing +5.78% AAPL – large white candle +2.67% QCOM – large white candle +2.36% SHLD – large white candle +3.12% MRVL – outside day white candle +1.95% STT – white candle continuation +2.02% PCLN – white candle continuation +3.04% ICE – hanging man +1.10% JOYG – bullish engulfing +1.21% X – bullish engulfing +2.36% FAS – bullish engulfing +5.28% SPG – bullish engulfing +1.88% GMCR – spinning top continuation +2.41% AMZN – large white candle continuation +3.70% MUR – white candle continuation +2.92% AMX – large white candle continuation +4.06% Stocks to Watch on Friday Leading Stocks Holding Above 30 DMA BIDU, VPRT, BAP, GR, K, DV, CPLA, SYNA, X, BDX, AAPL, GXDX, ORCL, DECK, CPLA, MYGN, DV, STRA, GILD, JW.A, ACN, APEI, PSYS, ESRX, NFLX, BYI, JOYG, MHS, NTLS, BKC, CBST, HDB, ICE, PCLN, RBN, SLGN, USD Moving Above 30 DMA = 16 AMED, AMX, BLUD, CHL, CTSH, ESI, GES, GMCR, GPRO, HLF, JCOM, JEC, PPD, PWR, WRC, NIHD Moving Below 30 DMA = 1 FAZ Staying Below 30 DMA AFAM, AMZN, ATW, BAP, BIIB, FLS, SNHY, VAR, MCD, PCP, SWN, MUR, RIMM, SPWRA, CAM, CLB, MOS, EBAY, FAS, MON, RCI, SNA, TDG, TRLG, URE, UYG, DLTR, EZPW, WAB, FSLR, WCG, WMT, DLB, JOSB, HANS, PETS, ALGT, GME Intermediate Term Market Trend: Neutral Short Term Market Trend: Up