SPX Rises...Bounces at 980 Support...

DJIA + 82.60, +0.90% SP500 + 9.94, +1.01% NASDAQ Comp. + 25.08, +1.30% Russell 2000 + 8.25, +1.50% Exchange NYSE NASD Advancing 339 488 Declining 2,736 2,232 Oil $69.19 +$2.44 Gold $937.70 +$3.40 SOX 291.67 +5.75 VIX 26.18 -1.71 The VIX moved down and did confirm the move up in the SPX on Tuesday. The SOX confirmed the move up in the Nasdaq. Strongest Sectors: XLF +2.05%...XLK +1.51%...XLB +1.50% Weakest Sectors: XLV -0.07%...XLP +0.17%...XLU +0.21% Eight of nine sectors moved higher on Tuesday. Financials, Technology, Materials, Industrials and Consumer Discretionary were stronger than the SPX +1.01%. Financial stocks stronger than XLF +2.05%: AXP, STT, RF, PRU, C, BK, MET, KEY, ZION, ICE, JPM, GS, BAC and ETFs UYG and FAS. Tech stocks stronger than XLK +1.51%: GLW, DELL, AAPL, AMT, TXN, SYMC, MSFT, HPQ, AMAT, INTC and ADBE. Sector Watch Up Trending: XLK, XLB, XLY Horizontal Breakout: XLV Sideways: XLE, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 992 = last two weeks low 1,007 = Nov horizontal resistance 1,025 = 950 Chart target 1,044 = October horizontal Key support levels: 980 = last broken resistance now support 962 = July 23 S1, 30 DMA, 38.2% Fib extension 944 – 956 = old January/June/July resistance The SPX opened near Monday’s close bounced off of support as we indicated on Monday as the most probable scenario and trended higher all day closing at 989.67 less than two points below its high. The SPX rose to its support low of the past two, Monday’s R1 and its 20 DMA. If it breaks above the 992 to 996 area the next level of resistance is 1,007. Many individual stocks had strong bull flag support bounces and we mention many of them in tonight’s post. DJIA volume was an average 158 million shares. Guidance: The intermediate term trend is still up, as the SPX bounced up from the 980 support area and moved to Monday’s R1 and its 20 DMA. Look for the support bounce to continue but be prepared if the SPX fails to follow through and returns to the 980 support area, then watch for a break to the 965 support area. Flag Setups and Bounces in Progress: JCG, JCI, CTRP, WLT, FLS, WYNN, AXP, STT, JOYG, PCLN, CAT, GRMN, JEC, WHR, AGCO, AGU, X, FWLT, SPG, ZION, BAC, BDK. Key stocks AA, BAC, CAT, HD, JPM, TRV and UTX were strong on Tuesday. Stocks to Watch on Wednesday Leading Stocks Holding Above 30 DMA PWRD, CPLA, ACN, PSYS, MHS, AMED, AMX, BYI, CTSH, AAPL, PETS, USD, FUQI, JOSB, BAP, CAM, DLB, EBAY, FAS, NIHD, PCLN, SNHY, TDG, UYG, WRC, ESI, MOS, WCG, SNA, X, CBST, WAB, BLUD, CLB, JOYG, PCP, URE, WMT, EZPW, RBN, AFAM, CHL, FLS, VAR, BKC, DV, GR, CLB, HANS, JEC, GME, HLF, BIIB, VPRT, RCI Moving Above 30 DMA = 7 ATW, GES, HDB, ORCL, RIMM, STRA, MON Moving Below 30 DMA = 1 VPRT Staying Below 30 DMA BIDU, DECK, DLTR, JCOM, MUR, NFLX, SLGN, SPWRA, AMZN, GMCR, GXDX, PPD, PWR, SWN, TRLG, MYGN, ESRX, ALGT, APEI, GILD, K, FSLR, GPRO, SYNA, BDX, JW.A, MCD, FAZ, NTLS, ICE Intermediate Term Market Trend: SPX, DJIA, RUT = Neutral, Nasdaq = Up Short Term Market Trend: Neutral