Markets Mixed on Options Expiration Friday...

DJIA + 32.12, +0.37% SP500 - 0.36, -0.04% NASDAQ Comp. + 1.58, +0.08% Russell 2000 - 2.80, -0.54% Exchange NYSE NASD Advancing 1,424 1,115 Declining 1,483 1,550 Oil $63.56 +$1.54 Gold $937.50 +2.10 SOX 290.49 +3.49 VIX 24.34 -1.08 The VIX moved down and did NOT confirm the move down in the SPX on Friday. Friday was the lowest close in the VIX since September 8, 2008. Strongest Sectors: XLK +0.96%...XLE +0.58%...XLB +0.49% Weakest Sectors: XLI -1.15%...XLF -0.65%...XLU -0.46% 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 The SPX had its biggest one week rise and its largest trading range 68.64 points since the week of March 9 when the current uptrend began. The SPX rose from 879 to 940 on the catalysts positive earnings on GS, INTC and IBM. The reaction to the INTC earnings and management's detailed guidance for the second half of the year drew stronger buying than most expected. We stated last week that positive earnings could be the catalyst to lift the market off support and that is exactly what happened. Even the selloff in GOOG on Friday in reaction to its earnings Thursday afternoon could not keep the NASDAQ down. AAPL was up again on Friday and along with INTC has been a driving force behind this week's rise. Of course 940 -955 is a strong horizontal resistance area that kept the SPX from going higher in June. With the market in a sideways trend or trading range the probabilities indicate a likely pull back. What do you see on these charts? (click image to enlarge) How about these? (click image to enlarge) And these? (click image to enlarge) Upward momentum slowed and then.... (click image to enlarge) And... (click image to enlarge) So with the SPX and broad indices at resistance what are the catalysts for the next week? Earnings...yes, we are still in the midst of earnings season and hundreds of companies report next week. Key companies reporting include: Tuesday: AAPL, CAT, GENZ, MRK, MS, BTU, YHOO, WFC Wednesday: F, GR, ISRG, MOS, UNP Thursday: AMZN, BIDU, AXP, BNI, DECK, MSFT, MCD, NFLX, POT Friday: BDK, WYNN The earning reports and managements comments about the third quarter and the second half of the year will be central to the Street's action next week. The strength of the earnings and comments can either drive this market through resistance or turn the market down from resistance. The SPX, Nasdaq and the RUT all formed an inside day on Friday with Thursday the high day. Watch Thursday's S1 level and for potential confirmation of what was essentially a bearish harami on Friday. We are on Yellow Alert on Monday Technically the chart suggests this market is more likely to move down than up. However one of the core tenets of technical analysis states: Market Action Discounts Everything. New information will be coming into the market next week which could drive the market higher or lower. No one can see the future so you must be ready for the break out to the upside or the selloff from resistance. We'll see you on Monday...

Stocks to Watch on Monday 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, 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 Moving Above 30 DMA = 7 CBST, CHL, DV, STRA, SWN, WAB, MCD Moving Below 30 DMA = 3 AFAM, CLB, URE Staying Below 30 DMA FAZ, BKC, APEI, NTLS, HDB, SYNA, GXDX, ICE, JW.A, JOYG, MYGN, PWR, GPRO, JEC, BLUD, RBN, BIIB, FLS, VAR, PCP, RIMM, SPWRA, MON, EZPW, FSLR, WMT, HANS, GME Intermediate Term Market Trend: Neutral Short Term Market Trend: Up