SPX Moves Down, Bounces at Support as INTC Rises...

DJIA - 47.92, -0.50% SP500 - 8.31, -0.81% NASDAQ Comp. - 19.71, -0.97% Russell 2000 - 7.79, -1.34% Exchange NYSE NASD Advancing 802 768 Declining 2,209 1,964 Oil $69.96 -2.78 Gold $951.70 -$5.30 SOX 306.18 -5.00 VIX 26.01 +1.25 The VIX moved UP and did confirm the move DOWN in the SPX on Monday. The SOX confirmed the move down in the Nasdaq. Strongest Sectors: XLP +0.20%...XLV -0.17%...XLF -0.34% Weakest Sectors: XLE -1.94%...XLY -1.69%...XLB -1.32% One sector moved higher on Monday. Consumer Staples, Healthcare and Financials were stronger than the SPX -0.81%. Financial stocks stronger than XLF -0.34%: BK, CME, SCHW, TRV, JPM, USB, WFC, CB, GS, ALL, ICE, MMC, NTRS, AFL and KEY. Tech stocks stronger than XLK -1.28%: INTC, HPQ, VZ, MSFT, IBM, MA, ADP, T, DELL, GOOG, AMAT, SYMC, ADBE, AAPL and ORCL. Sector Watch Up Trending: XLK, XLB, XLY Horizontal Breakout: XLV Sideways: XLE, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 1,025 = 950 Breakout Chart target 1,044 = October horizontal 1,075 = 875 Breakout Chart target Key support levels: 1,017 = Friday’s S1 level 1,007 = Nov horizontal resistance 992 - 996 = recent support low 980 = last broken resistance now support 962 = July 23 S1, 30 DMA, 38.2% Fib extension 944 – 956 = old January/June/July resistance Perhaps the biggest news of the day as the SPX fell to a support low of 1,014, the area of the August 21 S1 level, before bouncing to close at 1,020.62 was INTC. Why INTC? Because INTC gapped higher on Friday as they raised Q3 expectations. INTC gapped 73 cents on Friday and retraced only 29 cents of that gap at Monday’s low before rising and closing 7 cents higher. This shows us that institutions consider Friday’s news important as they continued to buy the stock on Monday, a down market day. INTC is a bell weather company as the largest semiconductor company in the world. When institutions are buying INTC they are expecting the market and the economy to get better. At $20 plus per share they are paying the highest price since early last September. INTC is a component in the DJIA, SP 500 and the NDX 100. The August 21 S1 level at 1,017 and S2 level at 1,009 still remain the important short term support levels and Friday’s 1,039 high as resistance. DJIA volume slipped 4 million shares to 201 million shares on Monday. Realize that 62 million shares traded in the last 2 ½ half hours of trading as the index rose and 32 million shares traded in the final 30 minutes as the DJIA rose 29 points. Guidance: The intermediate term trend is still up and the six day trend is neutral as the index pulled back to the August 21 S1 level before rebounding. The SPX continues to look like a horizontal bull flag. Today’s selling occurred during the first 30 minutes of trading, moved sideways for most of the day and rose during the last hour indicating there are serious buyers in the 1,017 support area. Today reminded me of August 17 where the SPX fell 30 points during the first 15 minutes of trading and then held support at 980 before rising 1,027 that Friday, August 21. Look for support bounce opportunities. We looked at BDK and WHR in tonight’s Advanced Technical webcast. Stay with trades that continue to move in the direction of the trend. 1,015 to 1,025 is still the key trading level. As always follow your rules. Flag Setups and Bounces in Progress: BDK, JEC, WLT, JCG, JCI, WYNN, AGCO, SPG, JOYG, X, DOW Breakout in Progress: WHR, AXP, BAC, HOLX, TXN, MRVL, INTC, XLNX Breakout Setup: GRMN, FWLT, FLS, ZION Breakout Setups that pulled back on Monday: DE, MA, CAT, STT, DD, AGU Key stocks JPM, PG and TRV were strong on Monday. AAPL -1.84 QCOM -0.80 GOOG -3.08 BIDU -9.47 NDX 100 stocks stronger than the NDX included GRMN, CEPH, HSIC, RYAAY, BIIB, INTC, GENZ, AMGN, VRTX, HOLX, ILMN, MSFT, FLIR, GILD and NIHD. Stocks to Watch on Tuesday Leading Stocks Holding Above 30 DMA PWRD, PSYS, MHS, AMED, AMX, BYI, CTSH, AAPL, PETS, USD, FUQI, JOSB, BAP, CAM, EBAY, FAS, PCLN, SNHY, TDG, UYG, WRC, ESI, WCG, SNA, X, CBST, WAB, BLUD, CLB, PCP, URE, WMT, EZPW, RBN, FLS, VAR, BKC, DV, GR, CLB, HANS, JEC, BIIB, GES, HDB, MON, ESRX, JW.A, BDX, DLTR, NTLS, MCD, MYGN, ICE, NIHD, RCI Moving Above 30 DMA = 3 APEI, GME, K Moving Below 30 DMA = 7 CPLA, GXDX, MUR, ORCL, PWR, STRA, TRLG Staying Below 30 DMA AFAM, DECK, GPRO, JOYG, SLGN, ATW, BIDU, HLF, MOS, NFLX, RIMM, SWN, CAN, VPRT, CHL, DLB, JCOM, SPWRA, AMZN, GMCR, PPD, ALGT, GILD, FSLR, SYNA, FAZ Intermediate Term Market Trend: SPX, DJIA, RUT = Neutral, Nasdaq = Up Short Term Market Trend: Neutral