SPX Holds at S1...Nasdaq Moves Lower...

DJIA - 24.71, -0.27% SP500 - 5.64, -0.56% NASDAQ Comp. - 19.89, -1.00% Russell 2000 - 8.37, -1.48% Exchange NYSE NASD Advancing 1,231 842 Declining 1,522 1,845 Oil $71.94 -$0.03 Gold $960.70 -$3.50 SOX 299.84 -4.02 VIX 25.67 +0.77 The VIX moved up and did confirm the move down in the SPX on Thursday. Strongest Sectors: XLI +0.53%...XLU +0.53%...XLY -0.08% Weakest Sectors: XLP -1.02%...XLB -0.83%...XLE -0.82% Two of nine sectors moved higher on Thursday. Industrials, Utilities and Consumer Discretionary were stronger than the SPX -0.56%. Financial stocks stronger than XLF -0.71%: C, SCHW, AXP, KEY, ZION, TRV, BAC, AOC, PNC, MMC, SPG and WFC. Tech stocks stronger than XLK -0.71%: EBAY, ADBE, SYMC, CSCO, YHOO, EMC, GLW, GOOG, TXN, IBM, QCOM and T. 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 extension 944 – 956 = old January/June/July resistance I Have to Admit I Was Dismayed by This Headline... I saw a headline just a few minutes ago that said Abby Joseph Cohen of GS predicts the SP 500 index may climb to 1,100 by year end. I find that totally humorous since we noted that the SPX chart in early May suggested a move to 1,075 in a time frame of 3 ½ months. Click here to read the May 4 post: http://chartsignals.blogspot.com/2009/05/monday-market-moves-higher.html Now we know chart target time frames are estimates not exact clocks, so maybe the SPX takes four or five months to reach that 1,075 target. It seems the target of 1,075 on the chart in May when the index was at 875 for the first time in months is way more impressive than a forecast of 1,100 by year end when the chart is already at a 1,000. Come on, the SPX just ran 125 points in four weeks and you are trying to impress me with a forecast of a 100 point rise in 4 months and 3 weeks? Somehow that doesn’t seem news worthy at all. It just seems for an analyst to say, after the SPX has already risen 340 points in four months, that the SPX may rise 100 more points in the next four plus months, is a belated forecast lacking any additive insight and perhaps a waste of the airwaves and digital space the comment occupied. Then again, maybe I just don’t get it? Are there any other technical traders out there that think this silly by virtue of its almost after the fact timing, 100 more points by year end forecast is one of the biggest say nothing unimpressive forecasts that you have ever heard? Reminds me of Shakespeare’s “Much Ado About Nothing.” The SPX hit an intra-day high of 1,008.00, then fell to Monday’s S1 area making a low at 992.49 before closing down 5.64 points at 997.08. The daily trading range expanded to 15 points from 12 points on Wednesday. The SPX did not close below the low of the previous high day, Tuesday, so we continue our Yellow Alert for short term traders. Thursday is the new high day. The financial media seems to suggest that everyone is waiting for Friday’s Unemployment Report which is forecasted to come in at 9.7% and non-fram payrolls falling by 275,000 to 300,000. We’ll see the number Friday morning before the open and the trading reaction once it is released. Until then sleep well. Key stocks like AXP, BA, BAC, CAT, DD GE, MMM, TRV and UTX rose. Both the VIX and SOX confirmed today’s pullback. AAPL fell $1.20 formed a spinning top. QCOM fell 21 cents. GOOG fell 78 cents. BIDU fell $5.72. Strong Nasdaq 100 stocks included ATVI, EBAY, LINTA, ROST, SPLS and SHLD. Stocks to Watch on Friday 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 Moving Above 30 DMA = 0 Moving Below 30 DMA = 6 BIIB, HDB, PPD, RCI, SWN, VPRT Staying Below 30 DMA ALGT, APEI, ESRX, GILD, ORCL, 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: Neutral