SPX Breaks Through Horizontal Resistance...

DJIA + 221.11, +2.60% SP500 + 23.73, +2.58% NASDAQ Comp. + 54.35, +3.06% Russell 2000 + 19.75, +3.94% Exchange NYSE NASD Advancing 2,444 2,093 Declining 549 681 Oil $68.58 +$2.27 Gold $978.60 -$0.20 SOX 280.37 +14.40 VIX 30.04 +1.12 The VIX moved up and did NOT confirm the move up in the SPX on Monday. Strongest Sectors: XLY +4.80%...XLI +4.62%...XLE +3.68% Weakest Sectors: XLV +0.66%...XLF +1.06%...XLP +1.99% All nine sectors moved higher on Monday. Consumer Discretionary, Industrials, Energy, Utilities, Materials and Technology were stronger than the SPX +2.58%. Financial stocks stronger than XLF +1.06%: SPG, AXP, SCHW, IVZ, ZION, TRV, CME, AFL ICE, TROW, ALL, CB and ETFs UYG and FAS. Leading tech stocks stronger than XLK +2.83% include: AMAT, GLW, EMC, CSCO, DELL, INTC, TXN, HPQ, YHOO, ADBE and EBAY. . Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY, XLE Sideways: XLV, XLF, XLP, XLI, XLU Down Trending: 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 broke through its horizontal resistance area and 200 DMA in convincing fashion today rising to the January resistance area of 944. If this is a good breakout, the 925 – 930 resistance should now become new support. Well it is finally happening; GM and C are being removed from the DJIA and being replaced by CSCO and TRV. CSCO in the third Nasdaq stock to join the DJIA following MSFT and INTC several years ago. Index Commentary The DJIA formed a large white candle that broke horizontal resistance and closed just below its 200 DMA…three month chart target 10,340…volume was 354 million shares …closed above its 20, 30 and 50 DMA. The SPX formed a large white candle that closed above its 930 horizontal resistance, 200 DMA and rose to its 944 January horizontal resistance…3 month chart target of 1,075…closed above its 20, 30, 50 and 200 DMA. The Nasdaq had a new high close of 1,828.68 its highest close since October 13, 2008… 3 month chart target of 2,065…closed above its 20, 30 50 and 200 DMA. The RUT formed a large white candle that closed above horizontal resistance and its 200 DMA….3 month chart target 606…closed above its 20, 30, 50 and 200 DMA. At the Open on Monday SPY – white candle new high close KOL – white spinning top FAS – white spinning top CTV – white spinning top JOYG – white spinning top close STT – black spinning top X – white candle new high close ADBE – large white candle new high close EL – large white candle support bounce WAB – white spinning top OSG – white spinning top USD – large white candle break horizontal resistance STLD – white spinning top ZION - hammer OSG – large white candle FSLR – black candle at 20 DMA NTAP – large white candle breakout T1 MON – large black candle FWLT – white candle new high close Stocks to Watch on Tuesday 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, CPLA, JEC, MYGN, PWR, URE Moving Above 30 DMA = 12 AMZN, DLB, DV, EZPW, JCOM, JOSB, JW.A, NTLS, SNA, SNHY, STRA, WAB Moving Below 30 DMA = 0 Staying Below 30 DMA APEI, ESI, HANS, URE, MON, AMED, PETS, PWR, ALGT, NFLX, GME, GILD, GPRO, SLGN, BKC, BLUD Intermediate Term Market Trend: Neutral Short Term Market Trend: Up