SPX Breaks 1,044 Resistance...

DJIA + 21.39, +0.22% SP500 + 6.61, +0.63% NASDAQ Comp. + 10.88, +0.52% Russell 2000 + 6.44, +1.08% Exchange NYSE NASD Advancing 2.007 1,645 Declining 965 1,069 Oil $68.86 -0.43 Gold $1,000.20 -$5.00 - October contract SOX 322.70 +1.46 VIX 23.86 -0.29 The VIX moved down and did confirm the move up in the SPX on Monday. The SOX confirmed the move down in the Nasdaq. Strongest Sectors: XLU +1.45%...XLF +1.31%...XLB +1.27% Weakest Sectors: XLK -0.34%...XLP -0.24%...XLY +0.33% Seven of nine sectors moved higher on Monday. Utilities, Financials, Materials, Industrials and Energy were stronger than the SPX +0.63%. Financial stocks that were down but stronger than XLF +1.31%: PRU, ZION, JPM, SPG, SCHW, ICE, AFL, MMC, TROW, MET, WFC, GS, KEY and ETFs UYG and FAS. Tech stocks stronger than XLK -0.34%: ADBE, TXN, EBAY, AAPL, IBM, GOG, MSFT, EMC, ADP and YHOO. Sector Watch Up Trending: XLK, XLB, XLY, XLV Horizontal Breakout: XLF Sideways: XLE, 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 On Tuesday our end of day post will be posted by late afternoon to early evening. I will be sharing one of the secrets of this emerging bull market that I have not heard other people reference as they continually express concern about this market moving back down. Be sure to check in late afternoon to early evening.

The SPX closed at 1,049.34 its highest close since October 6, 2008 and above its October 1,044 horizontal resistance area. The RUT broke October resistance last week and the Nasdaq broke its October resistance back in July. Only the DJIA is still below its October resistance.

(Click image to enlarge) Since August 24 the 1,044 level has held the SPX back. During that same time frame the Financial sector XLF has been bogged down in sideways congestion. On Monday XLF had its largest daily range for an up day since August 12 and its highest daily close since August 28 when it closed 3 cents higher at 14.75. It is not a coincidence that XLF has a strong move that the SPX breaks horizontal resistance. As we have stated in the past the Financial sector has been far and away the strongest sector since the March low and a key sector that will likely continue to lead the market higher. (click image to enlarge)

Guidance: If Monday’s breakout holds continue to trade to the upside and the next resistance of 1,075. Monday is a new high day. Continue to be prepared for a potential pull back. Be on Yellow Alert. Stay with the trend you are trading and short term traders be prepared for a potential pull back if it does occur. With the SPX breakout many individual stocks are providing breakout opportunities. Remember that stocks at resistance or that broke out of horizontal resistance will likely pull back if the SPX pulls back. Potential Breakout Setups: JOYG, AXP, CAT, WHR, MA, TXN, JCI, WLT, JEC, AGU, X, FAST Breakout: DOW, SPG, BDK, FLS, FWLT, MRVL, XLNX, HOLX, BIDU, NWSA, V, FLIR, WYNN, ADBE Potential C Patterns: DE, APOL C Pattern Breakout: ADSK, AGCO, AMAT, BUCY Flag Setups and Bounces in Progress: BAC, INTC, JCG, ZION, DD, STT, HANS Potential Down Trend Setups: AKAM, AMZN, FSLR AAPL +1.56 QCOM -0.38 GOOG +2.98 BIDU +9.55 NDX 100 stocks stronger than the NDX included BIDU, RIMM, DTV, GENZ, ADBE, CMCSA, AMGN, EBAY, ISRG, GILD, AAPL, GOOG and MSFT. Stocks to Watch on Tuesday Leading Stocks Holding Above 30 DMA PSYS, BYI, CTSH, AAPL, PETS, USD, JOSB, CAM, EBAY, PCLN, SNHY, TDG, CBST, WAB, BLUD, CLB, PCP, RBN, VAR, GR, CLB, BIIB, GES, HDB, ESRX, BDX, DLTR, NTLS, MYGN, ICE, NIHD, K, FLS, GXDX, WCG, BAP, FAS, FUQI, GME, JEC, PWR, PWRD, RCI, RIMM, WRC, UYG, BIDU, HDB, JW.A, ORCL, AMX, ATW, EZPW, GILD, MUR, JOYG, X, URE, TRLG, EBAY, GPRO, HLF, MHS, PPD, PSYS, SWN, SYNA, ALGT, DECK, VPRT, AMZN, GMCR, ACN, SPWRA Moving Above 30 DMA = 3 SLGN Moving Below 30 DMA = 3 FSLR, HANS Staying Below 30 DMA APEI, WMT, BKC, CPLA, DV, MON, SNA MCD, MOS, ESI, AMED, ICE, STRA, AFAM, NFLX, CHL, DLB, JCOM, FAZ Intermediate Term Market Trend: DJIA = Neutral, Nasdaq, RUT, SPX = Up Short Term Market Trend: Up