SPX Breaks Through Resistance...

DJIA + 188.03, +2.12% SP500 + 22.22, +2.33% NASDAQ Comp. + 47.22, +2.45% Russell 2000 + 17.15, +3.24% Exchange NYSE NASD Advancing 2,155 2,085 Declining 199 635 Oil $67.16 +$1.76 (Sep. contract) Gold $954.80 +$1.50 SOX 304.72 +2.95 VIX 23.43 -0.04 The VIX moved down and did confirm the move up in the SPX on Thursday. Strongest Sectors: XLB +3.41%...XLF +2.88%...XLE +2.84% Weakest Sectors: XLP +1.38%...XLK +1.96%...XLV +2.01% All nine sectors moved higher on Thursday. Materials, Financials, Energy, Utilities and Consumer Discretionary were stronger than the SPX +2.33%. Financial stocks stronger than XLF +2.88%: AFL, PRU, TROW, MET, KEY, RF, IVZ, ICE, BAC, MS, JPM, ALL, SPG, GS, TRV, ZION and ETFs UYG and FAS. Tech stocks stronger than XLK +1.96%: EBAY, EMC, VZ, SYMC, AMT, ADBE, T, MA, GOOG, TXN, CSCO, ORCL, GLW and HPQ. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY Sideways: XLE, XLV, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 980 = Thursday’s high 1,007 = November horizontal Key support levels: 962 = 161.8% Fib extension 944 – 956 = old January/June/July resistancel 930 = horizontal 920 = horizontal end of May high 917 = 50 DMA The SPX broke through the 955 horizontal resistance area rising in a strong to 979.42 before 976.29. Thursday morning MMM and POT rose after earnings following the price action of GS, INTC and IBM last week and AAPL on Tuesday. After the market closed MSFT, AMZN, BIDU, DECK, MCD, BNI and AXP reported earnings that sent the stocks and futures lower in after hours trading. After a string of positive earnings that sent the market higher and through the horizontal resistance of the past several months, will Thursday's after market close earning reports erase Thursday's gains and send the market back below the the 955 now support area? The strength of Thursday's breakout indicates the big money conviction of the move that began in early March and appears more likely to hold. A trader must however be prepared on every breakout for a potential failure. Look for Thursday's Earnings stocks to open lower Friday morning and watch how they trade. If they continue lower look for the broad indices to pull back. If they find support they may rise after the open like POT did on Thursday. Key Earnings Reactions Thursday: ISRG +26.84 CELG +18.63 EBAY +10.64% MMM +7.36% POT +7.70% AMZN -6.62% in after hours BIDU -1.78% in after hours AXP -4.96% in after hours BNI -2.15% in after hours DECK -9.22% in after hours MSFT -6.89% in after hours MCD -6.89% in after hours NFLX -0.99% in after hours Friday: BDK Stocks to Watch on Friday 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, 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, BLUD, CLB, HDB, JOYG, PCP, RIMM, URE, WMT, DV, EZPW, GME, MON, RBN, STRA Moving Above 30 DMA = 11 AFAM, BIIB, CHL, CLB, FLS, HANS, HDB, JEC, PWR, VAR, VPRT Moving Below 30 DMA = 2 GR, MCD Staying Below 30 DMA FAZ, BKC, APEI, NTLS, SYNA, GXDX, ICE, JW.A, MYGN, GPRO, SPWRA, FSLR Intermediate Term Market Trend: Neutral Short Term Market Trend: Up