SPX 932...Highest Close Since June 12...

DJIA +256.72 +3.07% SPX +26.84 +2.96% NASDAQ Comp. +63.17 +3.51% RUT +19.12 +3.85% Exchange NYSE NASD Advancing 2,754 2,266 Declining 284 480 Oil 61.53 +2.02 Gold 939.40 +16.60 SOX 281.56 +11.95 VIX 25.89 +0.87 The VIX moved higher and did NOT confirm the move up in the SPX. Strongest Sectors: XLF +4.25%...XLB +3.92%...XLK +3.75% Weakest Sectors: XLV +0.88%...XLP +1.63%...XLU +1.99% All nine sectors moved higher on Wednesday. Financials, Materials, Technology, Energy and Industrials were stronger than the SPX +2.96%. Financial stocks stronger than XLF +4.25%: AXP, C, ICE, PNC, PRU, MET, IVZ, ZION and JPM and ETFs UYG and FAS. Tech stocks stronger than XLK +3.75%: INTC, CSCO, AMAT, ADBE, SYMC, HPQ, MSFT, EBAY, ORCL, GLW, MA and IBM. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY Sideways: XLE, XLV, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 930 = horizontal 944 – 956 = January/June horizontal 962 = 161.8% Fib extension Key support levels: 921 = Wednesday's S1/horizontal end of May high 912 = 50 DMA 878 = 200 DMA 870 -875 = horizontal Stocks moved higher on Wednesday as INTC had positive earnings and guidance on Tuesday evening. The market gapped up after the INTC earnings in Tuesday’s after-hours trading and futures prices kept moving higher overnight. The SPX had a strong trend day with only modest pullbacks during the day and closed near its daily high. Propelled by INTC, the SOX closed at its highest level since June 10. A rising SOX is confirmation of the rising Nasdaq. The SPX closed at the 930 horizontal level. A modest pullback staying above its 922 S1 level would be bullish, similar to Tuesday's pause after Monday's large rise. So far the catalyst for this week's rise has been strong earnings from GS and INTC and economic releases that contained no unbearable negative surprises. Major Nasdaq stocks INTC, WYNN, RIMM, CSCO, AMAT, JOYG, BIDU, BRCM, ADBE, SHLD, FSLR, FWLT, MSFT, URBN, EBAY, ORCL, COST, YHOO, AKAM, AAPL, GOOG, AMZN and QCOM all moved up more than 3% on Wednesday. Retail stocks SHLD, ARO, URBN and JOSB see Wednesday morning graphs had strong gains. Check out the 21 stocks below that closed above their 30 DMA on Wednesday. Key Earnings and Economic Releases Thursday: BAX, GE, GOOG, IBM, JPM Jobless Claims Friday: BAC, C Housing Starts Index Commentary The DJIA moved formed a large white candle…broke above its 20, 30, and 50 DMA…three month chart target 10,340…volume was an above average 305 million shares…closed above its 20, 30, 50 and 200 DMA. The SPX formed a large white candle…broke above its 30 and 50 DMA…3 month chart target of 1,075…closed above its 20, 30, 50 and 200 DMA. The Nasdaq formed large white candle….broke above its 30 DMA…3 month chart target of 2,065…closed above its 20, 30, 50 and 200 DMA. The RUT formed a large white candle…broke above its 20, 30 and 50 DMA…3 month chart target 606…closed above its 20, 30, 50 and 200 DMA. 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, VPRT Moving Above 30 DMA = 21 AMZN, ATW, BAP, CAM, DECK, DLB, EBAY, FAS, GES, GILD, JCOM, NIHD, ORCL, PCLN, RCI, SNHY, TDG, TRLG, UYG, URE, WRC Moving Below 30 DMA = 0 Staying Below 30 DMA FAZ, STRA, BKC, APEI, DV, NTLS, HDB, SYNA, CBST, CHL, ESI, GXDX, ICE, JW.A, WCG, JOYG, MCD, MYGN, PWR, X, GPRO, JEC, BLUD, RBN, AFAM, BIIB, FLS, VAR, PCP, SWN, MUR, RIMM, SPWRA, CLB, MOS, MON, SNA, EZPW, WAB, FSLR, WMT, HANS, GME Intermediate Term Market Trend: Neutral Short Term Market Trend: Up