SPX Breaks 1,017...Rises to 1,025 Resistance...

The SPX broke through the 1,017 resistance level that it could not get through on Friday and moved to the next level of resistance closing at the 1,025 resistance level...I'll be teaching an AT Workshop in Philadelphia Wednesday and Thursday to about 300 traders... DJIA + 56.07, +0.59% SP500 + 8.99, +0.88% NASDAQ Comp. + 18.99, +0.94% Russell 2000 + 5.88, +1.03% Exchange NYSE NASD Advancing 2,288 1,630 Declining 749 1,038 Oil $71.10 +3.08 Gold $997.90 +$3.00 SOX 316.72 +6.98 VIX 25.62 +0.36 The VIX moved up and NOT did confirm the move up in the SPX on Tuesday. The SOX confirmed the move up in the Nasdaq. Strongest Sectors: XLE +2.75%...XLB +1.37%...XLY +0.87% Weakest Sectors: XLV -0.46%...XLU +0.24%...XLF +0.43% Eight of nine sectors moved higher on Tuesday. Energy and Materials were stronger than the SPX +0.88%. Financial stocks that were down but stronger than XLF +0.43%: SPG, IVZ, MET, AFL, GS, SCHW, AXP, TROW, BK, RF, CME, PRU, STT, NTRS, MS, JPM and ETFs UYG and FAS. Tech stocks stronger than XLK +0.75%: AMT, DELL, AMAT, AAPL, EMC, ADBE, VZ, T, HPQ, INTC, MSFT and TXN. Sector Watch Up Trending: XLK, XLB, XLY, XLV Horizontal Breakout: XLF 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 = 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 SP futures moved higher overnight and the SPX and SPY opened higher and traded in a narrow trading range all day and closed near their high. The SPX closed at a 1,025.39, the horizontal resistance area beginning August 21 and the chart price target from the 950 breakout back in July. This is exactly what a trader would expect. Break one level of resistance 1,017 and rise to the next level of resistance 1,025 and then watch buyers and seller battle it out at the new resistance level. That is pretty much what occurred on Friday rising from 1,007 to 1,017. DJIA volume increased about 33% or 50 million shares to 202 million shares on Tuesday. Oil prices and oil stocks rose on Tuesday as the strongest sector. Gold traded in a narrow trading range between down a little to up a little finishing up $3 on Tuesday. Gold stocks...GDX, GLD AEM, GG, GOLD, IAG, NEM...were mixed in a narrow range with some rising and some pulling back. Guidance: The support bounce continued on Tuesday as the intermediate and short term trends followed through. With Tuesday as a short term high day following three up days, or a three white soldiers candle pattern, short term traders want to watch for a potential break of the low of the high day. 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. Potential Breakout Setups: FLS, FWLT, HOLX, MA, TXN, SPG, BIDU, NWSA Breakout: MRVL, XLNX, AGU Potential C Patterns: DE, X, AGCO, JCI, ADSK, APOL C Pattern Breakout: WYNN, AMAT, X, DOW, JOYG Flag Setups and Bounces in Progress: WHR, WLT, AXP, BAC, BDK, INTC, JEC, JCG, ZION, CAT, DD, STT, ADBE, FAST, HANS Potential Down Trend Setups: AKAM, AMZN, FSLR AAPL +2.62 QCOM +0.30 GOOG -2.68 BIDU +13.88 NDX 100 stocks stronger than the NDX included FSLR, STX, FWLT, NIHD, JOYG, XLNX, BIDU, STLD, ALTR, ILMN, MRVL, HANS, BRCM, GRMN, ORLY, NVDA, AMZN, INFY, COST, ERTS, RIMM, FLIR, LRCX, JNPR, MXIM, ATVI, DELL, KLAC, CTSH, AAPL and GILD. Stocks to Watch on Wednesday Leading Stocks Holding Above 30 DMA PSYS, BYI, CTSH, AAPL, PETS, USD, JOSB, CAM, EBAY, PCLN, SNHY, TDG, SNA, CBST, WAB, BLUD, CLB, PCP, WMT, RBN, VAR, BKC, GR, CLB, BIIB, GES, HDB, ESRX, BDX, DLTR, NTLS, MYGN, ICE, NIHD, K, DV, FLS, GXDX, WCG, APEI, BAP, FAS, FUQI, GME, JEC, PWR, PWRD, RCI, RIMM, WRC, MCD, UYG, BIDU, HDB, JW.A, ORCL Moving Above 30 DMA = 12 AMX, ATW, EZPW, GILD, HANS, MOS, MUR, MON, JOYG, X, URE, TRLG Moving Below 30 DMA = 3 EBAY, MHS, PSYS Staying Below 30 DMA ESI, AMED, ICE, CPLA, STRA, AFAM, DECK, GPRO, SLGN, HLF, NFLX, SWN, ACN, VPRT, CHL, DLB, JCOM, SPWRA, AMZN, GMCR, PPD, ALGT, FSLR, SYNA, FAZ Intermediate Term Market Trend: SPX, DJIA, RUT = Neutral, Nasdaq = Up Short Term Market Trend: Up