SPX Moves 58 Point to Close Down 3...Rises 14.9% for Q3...

DJIA -29.92 -0.31% SPX -3.53 -0.33% COMPQ -1.62 -0.08% RUT -6.17 -1.01% Exchange NYSE NASD Advancing 1,258 1,023 Declining 1,763 1,721 Oil 70.61 +3.90 Gold 1,008.00 +14.90 SOX 325.75 +2.75 VIX 25.61 +0.42 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 COMPQ. Strongest Sectors: XLK +0.29%...XLP +0.20%...XLF -0.47% Weakest Sectors: XLI -1.01%...XLV -0.73%...XLB -0.67% Two of nine sectors moved higher on Wednesday. Technology and Consumer Staples were stronger than the SPX -0.33%. Financial stocks stronger than XLF -0.47%: IVZ, C, ICE, PNC, CME, TRV, USB, GS, AXP, SPG, PRU, STT, AFL and MMC. Tech stocks stronger than XLK +0.29%: SYMC, YHOO, ADBE, CSCO, GLW, AMAT, IBM, TXN, DELL, INTC and VZ. 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 moved 58 points on Wednesday in a 16.93 point range and closed down -3.53 points. The extra volatile day apparently was short term reactions to a lower than expected Chicago PMI manufacturing report and a better than expected Q2 GDP revision to an annualized decline of 0.7% versus an expected 1.2% decline. (click image to enlarge) The SPX gained 2.7% in September and finished the third quarter +14.9% with its second best gain during the past 9 years. The quarter ended in June was +16.7%.

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Oil prices rose over 5% as the dollar continued to exhibit weakness. NKE gapped higher closing up $4.61 on better than expected earnings Tuesday evening.

SOX semiconductor stock index rose on Wednesday closing near recent highs and above its 320 horizontal support. UAUA dropped 6% in after-hours trading after announcing a public offering of stock and debt. RIMM which opened higher and rose more than $1.50 sold off and finished down one cent. Guidance: The intermediate term trend is still up on a day when momentum shifted from buyers to sellers to buyers to sellers to buyers. The SPX closed above the 1,056 support area. The 1,057 to 1,070 area is continuing to attract sellers just as it did from September 17 to 23. Today’s action proved that there are profit takers at the 1,060 area and buyers at the 1,050 area. Continue to trade the trend of the stock charts you are trading.

When does a trader know that the trend has reversed down? When prices break support and begin to form lower highs and lower lows.

Potential Breakout Setups: MRVL, DOW, JOYG, PCLN, HANS, AMZN, APOL, XLNX, JCG, WYNN Breakout: BA. AKAM, ISRG

Pulling Back: Potential C Patterns:

C Pattern Breakout: ADSK Flag Setups and Bounces in Progress: FSLR. DE, WHR, BDK,BUCY, JEC, JCI, AGU, HOLX, NWSA, FWLT, BIDU, DD, X, CAT, FAST, FLS, FLIR, STT, SPG, ZION, AXP, AMAT, TXN, ADBE, BAC, INTC, AGU, WLT Potential Down Trend Setups: RIMM, AGCO, AMX, MON, MYGN, ORCL, MA, V AAPL -0.03 QCOM -0.52 GOOG -2.68 BIDU -3.37 NDX 100 stocks stronger than the NDX: BRCM, NVDA, VRSN, SYMC, WCRX, ISRG, MXIM, YHOO, NTAP, CTXS, AMZN, JNPR, LRCX, MRVL, CHKP, APOL, KLAC, CELG, JBHT, SBUX, CERN, ADBE, CSCO, ILMN and XLNX. Stocks to Watch on Thursday Leading Stocks Holding Above 30 DMA CTSH, AAPL, PETS, USD, JOSB, CAM, EBAY, PCLN, SNHY, TDG, 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, 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, RCI Moving Above 30 DMA = 2 APEI, BKC Moving Below 30 DMA = 3 JEC, MHS, WAB, X Staying Below 30 DMA CBST, RBN, WCG, DLTR, RIMM, ALGT, CHL, DLB, MUR, PSYS, 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