SPX Closes at 1,028...

DJIA + 4.23, +0.04% SP500 + 0.12, +0.01% NASDAQ Comp. + 0.20, +0.01% Russell 2000 + 0.80, +0.14% Exchange NYSE NASD Advancing 1,437 1,411 Declining 1,562 1,279 Oil $71.43 -$0.62 Gold $944.30 -$0.20 SOX 302.99 +2.46 VIX 24.95 +0.03 The VIX moved up and did NOT confirm the move up in the SPX on Wednesday. Once again the SPX and VIX were near unchanged. The SOX confirmed the move up in the Nasdaq. Strongest Sectors: XLY +0.57%...XLE +0.46%...XLK +0.45% Weakest Sectors: XLI -1.18%...XLB -0.37%...XLF -0.27% Five of nine sectors moved higher on Wednesday. Consumer Discretionary, Energy, Technology, Consumer Staples and Healthcare were stronger than the SPX +0.01%. Financial stocks stronger than XLF -0.37%: CME, SPG, WFC, AXP, USB, TRV, GS, ALL, CB, BAC, RF, PNC and ETFs UYG and FAS. Tech stocks stronger than XLK +0.45%: EMC, INTC, QCOM, T, DELL, VZ, IBM and AMAT. 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 The SPX traded in an 11 point range on Wednesday its narrowest range this week. The weekly range through Wednesday is a meager 16 points. The SPX started to the downside found support around 1,022 and then rallied closing almost unchanged at 1,028.12. Stocks seem to be grinding this week much like they did the first two weeks of June and the first two weeks of August. The SPX is trading in a narrow range and lower volume as we move to the end of summer. Continue to watch Friday’s S1 level at 1,017 and S2 level at 1,009 as important short term support levels. DJIA volume fell another 19 million shares to 154 million shares on Wednesday. Guidance: The intermediate term trend is still up while the short term trend has turned neutral. The SPX is showing three spinning tops in a row all of which are staying above Friday’s S1 level forming what appears to be a horizontal bull flag. Advancing and declining issues are balanced this week further indicating this is not an aggressive sell off yet. Short term traders saw an intra-day break below the low of the high day on Wednesday, but not a close below. Stay with trades that continue to move in the direction of the trend. 1,025 is still the key trading level. As always follow your rules. The majority of our Flag and Breakout Setups paused or pulled back, a few continued to progress. Flag Setups and Bounces in Progress: JCI, WYNN, GRMN, AGCO, SPG, CERN Flag Patterns in Progress that pulled back on Wednesday: JOYG, X, DOW Breakout Setup: AGU, MA, DD, CAT, AXP, BAC, FLS, JCG, HOLX, STT, ZION Breakout Setups that pulled back on Wednesday: DE, FWLT, FLS Breakouts that pulled back on Wednesday: BDK, JEC, WHR, WLT Key stocks AXP, CVX, HD, INTC, KO, MCD, MRK, T, TRV and XOM were strong on Wednesday. AAPL -1.99 QCOM +0.71 GOOG -3.37 – We were stopped out at 467.90 today = a gain of 36.60 or +8.5% BIDU -4.10 NDX 100 stocks stronger than the NDX included GRMN, INFY, LRCX, LOGI, MRVL, VRSN, BBBY, KLAC, INTC, QCOM, NTAP, AMGN, AKAM, ERTS, CELG, COST, ALTR, CTXS and APOL. Stocks to Watch on Thursday Leading Stocks Holding Above 30 DMA PWRD, CPLA, PSYS, MHS, AMED, AMX, BYI, CTSH, AAPL, PETS, USD, FUQI, JOSB, BAP, CAM, EBAY, FAS, NIHD, PCLN, SNHY, TDG, UYG, WRC, ESI, WCG, SNA, X, CBST, WAB, BLUD, CLB, JOYG, PCP, URE, WMT, EZPW, RBN, FLS, VAR, BKC, DV, GR, CLB, HANS, JEC, BIIB, ATW, GES, HDB, ORCL, STRA, MON, MUR, BIDU, ESRX, GPRO, GXDX, ICE, JW.A, BDX, DLTR, K, PWR, SLGN, NTLS, MCD, TRLG Moving Above 30 DMA = 2 APEI, MYGN Moving Below 30 DMA = 5 AFAM, HLF, MOS, NFLX, RIMM Staying Below 30 DMA SWN, CAN, DECK, RCI, VPRT, CHL, DLB, GME, 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