Breakout or No Breakout...

DJIA - 34.68, -0.39% SP500 - 0.51, -0.05% NASDAQ Comp. + 10.18, +0.53% Russell 2000 + 3.48, +0.66% Exchange NYSE NASD Advancing 1,477 1,632 Declining 1,105 1,027 Oil $65.40 -$0.21 (Sep. contract) Gold $953.30 +$6.40 SOX 301.77 +7.80 VIX 23.47 -0.40 The VIX moved down and did confirm the move up in the SPX on Wednesday. This is the lowest close on the VIX since September 8, 2008. Strongest Sectors: XLY +1.03%...XLK +0.70%...XLI +0.31% Weakest Sectors: XLE -0.91%...XLU -0.53%...XLV -0.37% Six of nine sectors moved higher on Wednesday. Consumer Discretionary, Technology, Industrials, Materials, Financials and Consumer Staples were stronger than the SPX -0.05%. Financial stocks stronger than XLF +0.08%: KEY, C, USB, ZION, RF, TRV, ALL, CV, TROW, STT, SPG, NTRS, AFL, GS, MMC, BAC, IVZ, PRU and ETF FAS. Tech stocks stronger than XLK +0.70%:YHOO, AAPL, AMAT, EBAY, INTC, AMT, T, TXN, QCOM and SYMC. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY Sideways: XLE, XLV, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 944 – 956 = January/June horizontal 962 = 161.8% Fib extension Key support levels: 930 = horizontal 920 = horizontal end of May high 912 = 50 DMA 878 = 200 DMA 870 -875 = horizontal AAPL gapped up from strong earnings Tuesday evening and gave strength to the Nasdaq. The SPX finished flat. In after hours trading EBAY +4.73% and ISRG +17.42% were up. This should strengthen the Nasdaq at the open. The SPX keeps inching higher but so far has failed to clearly break resistance. Earnings have pushed the Nasdaq through resistance but so far have created enough buying to keep the broader indices at resistance but not quite enough to breakout to the upside. Short term traders stay on Yellow Alert prepared to trade up on a breakout and down on a break of the low of the high day. Look at these Charts... (click image to enlarge) Key Earnings Wednesday: BA -2.37% CME +1.52% after hours EBAY +4.73% after hours ESI +5.73% F +1.41% after hours ISRG +17.42% after hours MOS, QCOM, T, UNP, WLT Thursday: MMM, AMZN, BIDU, AXP, BNI, DECK, MSFT, MCD, NFLX, POT Friday: BDK, WYNN Stocks to Watch on Thursday Leading Stocks Holding Above 30 DMA PWRD, K, CPLA, ACN, PSYS, MHS, SLGN, AMED, ALGT, PPD, AMX, NFLX, BYI, CTSH, AAPL, BDX, DLTR, ESRX, PETS, USD, BIDU, FUQI, GMCR, GR, HLF JOSB, AMZN, ATW, BAP, CAM, DECK, DLB, EBAY, FAS, GES, GILD, JCOM, NIHD, ORCL, PCLN, RCI, SNHY, TDG, TRLG, UYG, WRC, ESI, MOS, MUR, WCG, SNA, X, CBST, CHL, SWN, WAB, MCD, BLUD, CLB, HDB, JOYG, PCP, RIMM, URE, WMT, DV, EZPW, GME, MON, RBN, STRA Moving Above 30 DMA = 0 Moving Below 30 DMA = 3 CHL, CLB, HDB Staying Below 30 DMA VPRT, AFAM, FAZ, BKC, APEI, NTLS, SYNA, GXDX, ICE, JW.A, MYGN, PWR, GPRO, JEC, BIIB, FLS, VAR, SPWRA, FSLR, HANS Intermediate Term Market Trend: Neutral Short Term Market Trend: Up