SPX Closes at 1,007...

DJIA - 32.12, -0.34% SP500 - 3.38, -0.33% NASDAQ Comp. - 8.01, -0.40% Russell 2000 - 0.53, -0.09% Exchange NYSE NASD Advancing 1,275 1,322 Declining 1,658 1,408 Oil $70.60 -$0.33 Gold $945.40 -$11.90 SOX 294.95 -3.58 VIX 24.99 +0.23 The VIX moved up and did confirm the move down in the SPX on Monday. Strongest Sectors: XLV +0.80%...XLE +0.43%...XLU +0.21% Weakest Sectors: XLB -1.32%...XLI -0.96%...XLY -0.91% Four of nine sectors moved higher on Monday. Healthcare, Energy, Utilities, Consumer Staples were stronger than the SPX -0.33%. Financial stocks stronger than XLF -0.42%: ZION, C, BAC, RF, JPM, ICE, MMC and WFC. Tech stocks stronger than XLK -0.45%: DELL, INTC, AMT, HPQ, AMAT, YHOO, GOOG, T and EBAY. 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 Chart target 1,044 = October horizontal Key support levels: 1,007 = Old horizontal resistance 996 = Thursday’s high 980 = last broken resistance now support 962 = 161.8% Fib extension 944 – 956 = old January/June/July resistance Check out At the Open list Tuesday morning as we will have some additions with nice chart set ups. The SPX sold off to 1,000.99 support where buyers stepped in 100 minutes before the close at drove the index back to a close at its November resistance of 1,007.10 and formed a hanging man and bearish harami. Interpret these candles in context of trend and support and resistance. The Nasdaq formed a doji while the DJIA and RUT formed a bearish harami. The RUT was the strongest of the four broad indices. A relatively strong small cap sector is not generally a sign of weakness in the index. Continue to trade with the up trend. The next horizontal resistance is 1,025 on the SPX. Short term traders continue on Yellow Alert as looking for a break below the low of the high day which was Friday. Key stocks BAC, HPQ, INTC, JNJ, JPM, MCD, MRK, WMT and UTX rose. The VIX and SOX confirmed Monday’s pullback. Financials, Consumer Discretionary and Industrials paused on Monday after leading the market over the past two weeks. FAS which gained 32% last week and 47% over the past two weeks was down -1.92%. A very modest pull back following a 47% rise. Regional bank stocks ETF KRE was up 1.22% on Monday. PCLN reported earnings before the open as we alerted you in Monday mornings BMO post, then gapped open up over $11 and finished up +$18.92 for the day. AAPL -79 cents QCOM -23 cents GOOG -49 cents BIDU +$4.84 Strong Nasdaq 100 stocks included LINTA, GENZ, DISH, DELL, ESRX, FWLT, GRMN and MXIM. Our real time virtual trades since July 23 in GOOG, SPY, XLB, ZION, BAC, XLF, MA, GRMN and BDK continue to perform very well. Our stock trades from the Thursday morning, FUQI which was stopped out on Friday did produce the support bounce and a re-entry that we alerted you to watch for in Friday’s post. Stocks to Watch on Tuesday Leading Stocks Holding Above 30 DMA PWRD, CPLA, ACN, PSYS, MHS, SLGN, AMED, AMX, NFLX, BYI, CTSH, AAPL, DLTR, PETS, USD, BIDU, FUQI, GMCR, JOSB, AMZN, ATW, BAP, CAM, DLB, EBAY, FAS, GES, JCOM, NIHD, PCLN, SNHY, TDG, TRLG, UYG, WRC, ESI, MOS, MUR, WCG, SNA, X, CBST, WAB, BLUD, CLB, JOYG, PCP, RIMM, URE, WMT, EZPW, MON, RBN, STRA, AFAM, CHL, FLS, PWR, VAR, SPWRA, BKC, DV, GR, CLB, HANS, GXDX, JEC, GME, HLF, BIIB, DECK, VPRT Moving Above 30 DMA = 1 ESRX Moving Below 30 DMA = 2 ALGT, HDB Staying Below 30 DMA PPD, RCI, SWN, APEI, GILD, ORCL, K, FSLR, GPRO, SYNA, BDX, JW.A, MCD, FAZ, NTLS, ICE, MYGN Intermediate Term Market Trend: SPX, DJIA, RUT = Neutral, Nasdaq = Up Short Term Market Trend: Neutral