Wednesday's Post is Coming...

A late selloff sent the SPX from resistance at 1,080.15 to support 1,060.87 in an expansion of the daily range from 7 points on Tuesday to nearly 20 points today... DJIA -81.32 -0.83% SPX -10.79 -1.01% Nasdaq -14.88 -0.69% RUT -7.32 -1.18% Exchange NYSE NASD Advancing 1,070 1,042 Declining 1,957 1,680 Oil 68.97 -2.79 – Nov contract Gold 1,013.10 -1.30 SOX 331.05 +1.72 VIX 23.49 +0.41 The VIX moved up and did confirm the move down in the SPX on Wednesday. The SOX moved up and did NOT confirm the move down in the Nasdaq. Strongest Sectors: XLK +0.00%...XLP +0.00%...XLU -0.34% Weakest Sectors: XLE -2.09%...XLF -2.02%...XLB -1.59% Two of nine sectors were unchanged on Wednesday. Technology, Consumer Staples, Utilities and Industrials were stronger than the SPX -1.01%. Financial stocks stronger than XLF -2.02%: SCHW, MMC, AOC, TROW, NTRS, CB, BAC, TRV, GS, AXP, BK, USB, ICE, ALL, CME and PNC. Tech stocks stronger than XLK +0.00%: T, YHOO, INTC, DELL, VZ, TXN, AAPL and ADP. Sector Watch Up Trending: XLK, XLB, XLY, XLV Horizontal Breakout: XLF Sideways: XLE, XLP, XLI, XLU Key Resistance Levels: 1,075 = 875 Breakout Chart Target 1,100 = September 2008 Old Supportesu9 Key Support Levels 1,061 = Sep 16 S1 Level 1,044 = October Horizontal Old Resistance 1,025 = 950 Breakout Chart Target 1,017 = Aug 27 Support Low The SPX, COMPQ, RUT and INDU all made a new high today and then reversed in the last 90 minutes of trading falling to the low of the day and forming a bearish engulfing pattern. Since today is a new high day it is true that the low of the high day was not broken, yet. However, the low of previous high day, Tuesday, for the COMPQ and RUT was broken and the previous high day, last Thursday, for the SPX and INDU was also broken. However none of the indexes broke below the S1 level or short term support of the September 16 large white candle or below their horizontal bull flag.

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Energy and financial stocks moved lower as did airline and education stocks. Guidance: Stay with the trend continues to be the correct strategy. Price action moved from a new high to the low or the five day horizontal bull flag during the last 90 minutes of trading. 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 some charts. Many of the stocks in our Breakout list are still forming horizontal bull flags similar to the SPX. Potential Breakout Setups: HANS, DE, AKAM, AMZN Breakout: XLNX, JCG, RIMM, MA, CAT, JOYG, FWLT, DOW, FAST, DD, X, FLS, BIDU, NWSA, V, FLIR Pulling Back: WLT, APOL, STT Potential C Patterns: C Pattern Breakout: ADSK Flag Setups and Bounces in Progress: 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 +1.02 QCOM -0.36 GOOG -0.60 BIDU -1.34 NDX 100 stocks stronger than the NDX: ERTS, XLNX, ALTR, LLTC, CHKP, YHOO, INTC, IACI, MRVL, PAYX, NTAP, RIMM, VRSN, AAPL, WCRX and RYAAY. Stocks to Watch on Thursday Leading Stocks Holding Above 30 DMA PSYS, CTSH, AAPL, PETS, USD, JOSB, CAM, EBAY, PCLN, SNHY, TDG, CBST, WAB, CLB, PCP, RBN, VAR, CLB, BIIB, GES, HDB, ESRX, BDX, DLTR, NTLS, ICE, NIHD, K, FLS, GXDX, WCG, BAP, FAS, FUQI, GME, JEC, PWRD, RCI, RIMM, WRC, UYG, BIDU, HDB, JW.A, ATW, EZPW, MUR, JOYG, X, URE, TRLG, EBAY, GPRO, HLF, MHS, PPD, PSYS, SWN, ALGT, DECK, VPRT, AMZN, GMCR, ACN, SPWRA, SLGN, AFAM, FSLR, JCOM, NFLX, HANS, ICE, DLB, DV, AMED, CPLA, ESI, GILD, STRA, CHL Moving Above 30 DMA = 0 Moving Below 30 DMA = 9 APEI, BKC, BLUD, GR, MCD, MYGN, PWR, SNA, SYNA Staying Below 30 DMA MOS, AMX, BYI, ORCL, WMT, MON, FAZ Intermediate Term Market Trend: DJIA = Neutral, Nasdaq, RUT, SPX = Up Short Term Market Trend: Neutral