SPX Breaks Support...

DJIA -41.11 -0.42% SPX -10.09 -0.95% COMPQ -23.81 -1.12% RUT -11.62 -1.89% Exchange NYSE NASD Advancing 713 658 Declining 2,313 2,039 Oil 65.89 -3.08 – Nov contract Gold 997.60 -15.50 SOX 323.04 -8.01 VIX 24.95 +1.46 The VIX moved up and did confirm the move down in the SPX on Thursday. The SOX moved down and did confirm the move down in the COMPQ. Strongest Sectors: XLV -0.11%...XLU -0.27%...XLP -0.51% Weakest Sectors: XLB -2.19%...XLF -2.00%...XLI -1.63% All nine sectors moved lower on Thursday. Healthcare, Utilities, Consumer Staples and Consumer Discretionary were stronger than the SPX -0.95%. Financial stocks stronger than XLF -2.00%: STT, CB, AXP, TRV, MMC, GS, BK, USB, AOC, NTRS, WFC, SCHW, JPM, MET, AFL and C. Tech stocks stronger than XLK -0.96%: QCOM, VZ, MSFT, EMC, ORCL, IBM, HPQ, GOOG, T, CSCO and AAPL. Sector Watch Up Trending: XLK, XLB, XLY, XLV Horizontal Breakout: XLF Sideways: XLE, XLP, XLI, XLU Down Trending: Key Resistance Levels: 1,061 = Sep 16 S1 Level 1,075 = 875 Breakout Chart Target 1,100 = September 2008 Old Supportesu9 Key Support Levels 1,044 = October Horizontal Old Resistance 1,025 = 950 Breakout Chart Target 1,017 = Aug 27 Support Low After an opening bounce off the 1,061 support area the SPX broke support and dropped 17 points in about 60 minutes and fell to the 1,044 support zone. The COMPQ, RUT and INDU indexes all dropped during the first hour of trading forming a large black candle which followed Wednesday’ bearish engulfing pattern. The indexes did have a late support bounce forming lower shadows as price moved above intra-day lows. Today’s price action broke the low of the high day which was Thursday and below the S1 level or short term support of the September 16 large white candle. Energy, financial and education stocks moved lower. BIDU fell $18 before rebounding $14 to close down -4.72 for the day. RIMM reported earnings after hours which exceeded estimates however its outlook disappointed and the stock dropped almost $10 in after hours trading. Guidance: The intermediate term trend is up with the short term trend forming a bull flag pattern. Price action broke the support of the five day horizontal bull flag and fell to the 1,044 support level. Depending on the individual chart and the traders’ rules, today may have been an exit day for some short term traders. The recent Yellow Alert became Red on the indexes. Many of the stocks in our Breakout list are still forming horizontal bull flags. Watch support at 1,044 and resistance at 1,061. Potential Breakout Setups: HANS, DE, AKAM, AMZN Breakout: XLNX, CAT, JOYG, DOW, FAST, DD, X, FLS, BIDU, V, FLIR Pulling Back: NWSA, FWLT, RIMM, MA, JCG, WLT, APOL Potential C Patterns: C Pattern Breakout: ADSK Flag Setups and Bounces in Progress: STT, BDK, SPG, WHR, FSLR, ZION, WYNN, BUCY, MRVL, AXP. AGU, AMAT, JEC, JCI, TXN, ADBE, HOLX, BAC, INTC Potential Down Trend Setups: AGCO, AMX, MON, MYGN, ORCL AAPL -1.68 QCOM +0.43 GOOG -1.69 BIDU -4.72 NDX 100 stocks stronger than the NDX: CTAS, CTXS, ORLY, QCOM, MSFT, ILMN, CELG, AMGN, TEVA, GILD, CHKP, GENZ, ORCL, HOLX and ROST. Stocks to Watch on Friday Leading Stocks Holding Above 30 DMA CTSH, AAPL, PETS, USD, JOSB, CAM, EBAY, PCLN, SNHY, TDG, WAB, PCP, RBN, VAR, CLB, BIIB, GES, ESRX, DLTR, NTLS, ICE, NIHD, K, FLS, GXDX, WCG, BAP, FAS, FUQI, GME, PWRD, RIMM, WRC, UYG, BIDU, HDB, JW.A, ATW, EZPW, JOYG, X, URE, TRLG, EBAY, GPRO, PPD, SWN, DECK, VPRT, AMZN, GMCR, ACN, SPWRA, SLGN, AFAM, FSLR, JCOM, NFLX, HANS, ICE, DV, AMED, CPLA, ESI, GILD, STRA Moving Above 30 DMA = 1 MCD Moving Below 30 DMA = 11 ALGT, BDX, CBST, CHL, DLB, HLF, JEC, MHS, MUR, PSYS, RCI Staying Below 30 DMA APEI, BKC, BLUD, GR, MYGN, PWR, SNA, SYNA, MOS, AMX, BYI, ORCL, WMT, MON, FAZ Intermediate Term Market Trend: DJIA = Neutral, Nasdaq, RUT, SPX = Up Short Term Market Trend: Down