Yellow Alert...SPX Did Not Break High of Low Day...

DJIA - 39.22, -0.42% SP500 - 2.93, -0.29% NASDAQ Comp. - 18.26, -0.91% Russell 2000 - 4.75, -0.83% Exchange NYSE NASD Advancing 731 508 Declining 1,267 1,723 Oil $71.97 +$0.55 Gold $964.20 -$3.30 SOX 303.86 -3.36 VIX 24.90 +0.01 The VIX moved up and did confirm the move down in the SPX on Wednesday. Strongest Sectors: XLF +3.45%...XLB +0.80%...XLP -0.65% Weakest Sectors: XLV -1.42%...XLE -1.00%...XLK -0.90% Two of nine sectors moved higher on Wednesday. Financials and Materials were stronger than the SPX -0.29%. Financial stocks stronger than XLF +3.45%: C, PNC, BAC, AXP, WFC, MMC, USB, JPM and ETFs UYG and FAS. Tech stocks stronger than XLK -0.90%: YHOO, MSFT, MA, AAPL, HPQ, DELL, ADP, GOOG and TXN. Sector Watch Up Trending: XLK, XLB, XLY Horizontal Breakout: XLV Sideways: XLE, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 1,007 = November horizontal 1,025 = 950 Chart target Key support levels: 996 = Thursday’s high 980 = last broken resistance now support 962 = 161.8% Fib extension944 – 956 = old January/June/July resistance The SPX hit a high of 1,006.64 then fell to Monday’s S1 area at 994.31 and then rose to close above 1,000 for the third straight day at 1,002.72. The SPX traded in a relatively narrow 12 point range between it 1,007 resistance and it 996 area of support. The SPX, DJIA and RUT formed hammer patterns and did not close below the low of the high day. The COMPQ formed a bearish engulfing pattern which closed less than a point below the low of the high day. We continue our Yellow Alert for short term traders. Financial XLF stocks rose +3.45% larger than the gains on Monday or Tuesday. Money Center Banks BAC, WFC and JPM lead financials. Regional banks ZION, RF and ETF KRE trailed. Real estate stocks like SPG and ETF URE also moved higher. Materials XLB +0.80% also moved higher day on Wednesday while other sectors slowed down. Financial Stocks (click image to enlarge) Key stocks like AA, AXP, BAC GE, JPM and TRV rose. Both the VIX and SOX confirmed today’s pullback. AAPL fell 44 cents formed a spinning top. QCOM fell 50 cents. GOOG fell $2.60. BIDU fell $4.44. Strong Nasdaq 100 stocks included GRMN, FWLT, AKAM, CTSH, SHLD and RIMM. Stocks to Watch on Thursday Leading Stocks Holding Above 30 DMA PWRD, CPLA, ACN, PSYS, MHS, SLGN, AMED, PPD, AMX, NFLX, BYI, CTSH, AAPL, DLTR, PETS, USD, BIDU, FUQI, GMCR, JOSB, AMZN, ATW, BAP, CAM, DLB, EBAY, FAS, GES, 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, EZPW, MON, RBN, STRA, AFAM, CHL, FLS, PWR, VAR, SPWRA, BKC, DV, GR, CLB, HANS, BIIB, GXDX, HDB, JEC, GME, VPRT Moving Above 30 DMA = 1 HLF Moving Below 30 DMA = 1 ALGT, APEI, ESRX, GILD Staying Below 30 DMA K, FSLR, GPRO, SYNA, BDX, JW.A, DECK, MCD, FAZ, NTLS, ICE, MYGN Intermediate Term Market Trend: SPX, DJIA, RUT = Neutral, Nasdaq = Up Short Term Market Trend: Up