SPX Closes at 1,044...How Many Times Have You Seen That Number in Chart Signals Posts?

Good Morning everyone...it is 1:40 am MT and I just arrived from the airport after teaching a two day Advanced Technicals Workshop in Philadelphia to 300 traders. Safe trip and I'm ready for a new trading day on Friday. Just a few brief comments for Thursday. DJIA + 80.26, +0.84% SP500 + 10.77, +1.04% NASDAQ Comp. + 23.63, +1.15% Russell 2000 + 8.50, +1.45% Exchange NYSE NASD Advancing 2,312 1,808 Declining 726 875 Oil $71.94 +0.63 Gold $995.40 +$0.10 SOX 325.82 +5.69 VIX 23.55 -0.77 The VIX moved down and did confirm the move up in the SPX on Thursday. The SOX confirmed the move up in the Nasdaq. Strongest Sectors: XLE +1.73%...XLK +1.37%...XLY +1.34% Weakest Sectors: XLU +0.00%...XLB +0.56%...XLP +0.72% Eight of nine sectors moved higher on Thursday. Energy, Technology and Consumer Discretionary were stronger than the SPX +1.04%. Financial stocks that were down but stronger than XLF +0.83%: GS, PRU, SPG, C, ALL, MET, STT, MMC, BAC, AFL AXP and ETFs UYG and FAS. Tech stocks stronger than XLK +1.37%: YHOO, DELL, ADBE, EBAY, CSCO, T, EMC, GLW, AMT, GOOG and VZ. Sector Watch Up Trending: XLK, XLB, XLY, XLV Horizontal Breakout: XLF Sideways: XLE, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 1,044 = October horizontal 1,075 = 875 Breakout Chart target Key support levels: 1,025 = 950 Breakout Chart target 1,017 = August 21 S1 level & August 27 support low 1,007 = Nov horizontal resistance 992 - 996 = Early August Support Low 980 = July 23 Resistance - August 17 Support 962 = July 23 S1, 30 DMA, 38.2% Fib extension 944 – 956 = old January/June/July resistance The SPX closed at 1,044 the October horizontal resistance area. This is the first time the SPX is at this level in 11 months so it certainly would be reasonable to see a pause at this level on Friday. We’ll watch on Friday to see if the SPX pulls back at resistance or still has more buying to push through and begin moving towards the 1,075 price target we posted on originally on May 4. Short term traders be mindful that Thursday is the new high day. Last week there were numerous individuals that chatted in during my webcasts identifying a potential head and shoulders pattern on the SPX. I cautioned against this low probability point of view in an up trend, because it distracts from your ability to see and trade the trend. Thursday’s new high close should put that view to rest…at least until the next pull back off a higher high. Stocks to Watch on Friday Leading Stocks Holding Above 30 DMA PSYS, BYI, CTSH, AAPL, PETS, USD, JOSB, CAM, EBAY, PCLN, SNHY, TDG, CBST, WAB, BLUD, CLB, PCP, WMT, RBN, VAR, GR, CLB, BIIB, GES, HDB, ESRX, BDX, DLTR, NTLS, MYGN, ICE, NIHD, K, FLS, GXDX, WCG, APEI, BAP, FAS, FUQI, GME, JEC, PWR, PWRD, RCI, RIMM, WRC, UYG, BIDU, HDB, JW.A, ORCL, AMX, ATW, EZPW, GILD, HANS, MUR, JOYG, X, URE, TRLG, EBAY, GPRO, HLF, MHS, PPD, PSYS, SLGN, SWN, SYNA Moving Above 30 DMA = 5 ALGT, DECK, FSLR, VPRT, AMZN Moving Below 30 DMA = 5 BKC, CPLA, DV, MON, SNA Staying Below 30 DMA MCD, MOS ESI, AMED, ICE, STRA, AFAM, NFLX, ACN, CHL, DLB, JCOM, SPWRA, GMCR, FAZ Intermediate Term Market Trend: SPX, DJIA, RUT = Neutral, Nasdaq = Up Short Term Market Trend: Up BMO – ES +0.25 and NQ +2.25 futures are flat to slightly higher in pre-market trading pointing to slightly higher open. GOOG, AAPL and BIDU are near Tuesday’s close in early pre-market trading. Overnight in Asia and Europe futures traded as high as 1,038 nearing the 1,044 October resistance. The SPX hit an intra-day on1,039.47 on August 28. Will the 1,025 resistance become the new support at this time? We’ll watch for the answer today. Day one of our AT Workshop with 300 traders went extremely well. We start day two this morning. Continue to trade with the trend of the stocks you are trading. Look at these Charts… AXP…FLS...MRVL…SPG…URE…PCLN At the Open on Thursday SPY – QQQQ – WLT – JOYG – AMX - DOW – AGU – X – DE – FLS – FWLT – WHR – AXP – PCLN – BDK – BAC – FAS – ZION – AAPL – PCP – FUQI – PWRD – FCX – CAM – MHS – TGT – ARO – ANF – GES –