SPX Pause at 1,061 Resistance Level...

DJIA -47.16 -0.48% SPX -2.37 -0.22% COMPQ -6.70 -0.31% RUT -2.77 -0.45% Exchange NYSE NASD Advancing 1,446 1,129 Declining 1,556 1,593 Oil 66.71 -0.13 Gold 993.10 +0.60 SOX 323.00 -4.67 VIX 25.19 +0.31 The VIX moved up and did confirm the move down in the SPX on Tuesday. The SOX moved down and did confirm the move down in the COMPQ. Strongest Sectors: XLP +1.25%...XLY +0.47%...XLU +0.47% Weakest Sectors: XLK -0.53%...XLF -0.46%...XLE -0.28% Five of nine sectors moved higher on Tuesday. Consumer Staples, Consumer Discretionary, Utilities, Healthcare and Materials were stronger than the SPX -0.22%. Financial stocks stronger than XLF -0.46%: PNC, C, SCHW, KEY, AFL, GS, IVZ, MMC, JPM, ALL ICE, ZION, CB, STT, BAC, NTRS and TRV. Tech stocks stronger than XLK -0.53%: GLW, SYMC, GOOG, YHOO, EBAY, ORCL, MSFT, AAPL and IBM 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 Support Key Support Levels 1,056 = Sep 25 R1 level 1,044 = October Horizontal Old Resistance 1,025 = 950 Breakout Chart Target 1,017 = Aug 27 Support Low The SPX paused on Tuesday after Monday’s strong gains. Trading stayed above Monday’s S1 level at 1,054 at closed at the 1,061 horizontal resistance area. The Financial sector XLF pulled back but also stayed above Monday’s S1 level. Education stocks APOL, DV, ESI and STRA again experienced a strong support bounce on Tuesday. RIMM rallied modestly after two down days following Friday’s gap down after its Thursday afternoon earning announcement. Guidance: The intermediate term trend is up and momentum paused on Tuesday after a strong surge on Monday. The SPX held at the 1,061 area. Monday’s S1 is 1,054. If the 1,061 resistance level breaks on Wednesday look for a potential bounce to the 1,075 resistance level. Remember the 1,060 to 1,075 is a significant resistance area that likely will require more consolidation before a breakout. This is the price target for the 875 breakout in early May and there may be more profit takers at this level. Continue to trade the trend of the stock charts you are trading. Potential Breakout Setups: HANS, AMZN, APOL, XLNX, JCG, WYNN Breakout: AKAM, ISRG Pulling Back: Potential C Patterns: C Pattern Breakout: ADSK Flag Setups and Bounces in Progress: FSLR. JOYG, DE, WHR, BDK,BUCY, JEC, JCI, AGU, HOLX, NWSA, FWLT, BIDU, DD, X, DOW, CAT, FAST, FLS, FLIR, STT, SPG, ZION, MRVL, AXP, AMAT, TXN, ADBE, BAC, INTC, AGU, WLT, MA, V Potential Down Trend Setups: RIMM, AGCO, AMX, MON, MYGN, ORCL AAPL -0.73 QCOM -0.47 GOOG +0.00 BIDU -1.63 NDX 100 stocks stronger than the NDX: WCRX, WYNN, FSLR, APOL, CMCSA, ILMN, GRMN, RIMM, NIHD, BIIB, JOYG, SIAL, AKAM, HANS, ADSK, DISH, URBN, INFY and CTSH. Stocks to Watch on Wednesday Leading Stocks Holding Above 30 DMA CTSH, AAPL, PETS, USD, JOSB, CAM, EBAY, PCLN, SNHY, TDG, WAB, PCP, VAR, CLB, BIIB, GES, ESRX, NTLS, ICE, NIHD, K, FLS, GXDX, BAP, FAS, FUQI, GME, PWRD, 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, DV, AMED, ESI, GILD, STRA, MCD, BDX, CPLA, HLF, ICE, JEC, MHS Moving Above 30 DMA = 1 RCI Moving Below 30 DMA = 3 CBST, RBN, WCG Staying Below 30 DMA DLTR, RIMM, ALGT, CHL, DLB, MUR, PSYS, 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: Neutral