DJIA and SPX Inch Higher in Front of Earnings...

DJIA + 20.86 +0.21% SP500 + 4.70 +0.44% COMPQ - 0.14 -0.01% Russell 2000 - 1.11 -0.18% Exchange NYSE NASD Advancing 1,645 1,233 Declining 1,354 1,457 Oil $73.27 +1.50 Gold $1,057.00 +8.90 SOX 326.44 +4.57 VIX 23.01 -0.11 The VIX moved down and did confirm the move up in the SPX on Monday. Monday was the lowest close since September 8, 2008. The SOX moved up and did NOT confirm the move down in the COMPQ. Strongest Sectors: XLE +1.35%...XLU +1.03%...XLF +0.79% Weakest Sectors: XLI -0.19%...XLK +0.05%...XLB +0.25% Eight of nine sectors moved higher on Monday. Energy, Utilities, Financials, Consumer Discretionary and Healthcare were stronger than the SPX +0.44%. Financial stocks stronger than XLF +0.79%: WFC, BAC, C, KEY, AFL, CB, CME, RF and ETFs UYG and FAS. Tech stocks stronger than XLK +0.05%: AMAT, AMT, GOOG, EBAY, IBM, MA, TXN, MSFT, GLW and AAPL. Sector Watch Up Trending: XLK, XLB, XLY, XLV Horizontal Breakout: XLF Sideways: XLE, XLP, XLI, XLU Down Trending: Key Resistance Levels: 1,075 = 875 Breakout Chart Target 1,100 = September 2008 Old Support Key Support Levels 1,061 = Sep 16 S1 Level 1,056 = Sep 25 R1 level 1,044 = October Horizontal Old Resistance 1,025 = 950 Breakout Chart Target 1,017 = Aug 27 Support Low 1,007 = November 2008 Horizontal Resistance The DJIA and SPX closed at new 52 week highs on Monday while the COMPQ and RUT moved slightly lower. The indices are slowly grinding higher over the past three trading days moving into earnings season which begins to pick up on Tuesday and continues this week with several major companies reporting. Tuesday Earnings: ABT, AFAM, ALTR, CSX, HDB, INTC, JNJ, LLTC Semiconductors SOX again were among the stronger stocks led by MRVL, ALTR, BRCM, LLTC, MXIM, KLAC, INTC and LRCX. One week ago on October 5 there was one stock in the Breakout list and one stock in the Potential Breakout list. Today there are 10 stocks in the Breakout list and 17 stocks in the Potential Breakout list indicating that a significant support bounce has occurred over the past week moving these stocks from support to resistance. Resistance breakout or bounce down? Guidance: The intermediate term trend is still up as the support bounce held at the area of September resistance on Monday. GOOG had a strong follow through after its horizontal breakout last week. The market appears to be waiting for INTC earnings after the close on Tuesday and will likely set the tone for resistance breakout or pull back. Other key stocks GS, JPM, BAC, IBM and GOOG will be reporting this week. Continue to take entry signals as they occur and follow your rules. Breakout: CAM, FCX, JOYG, JCG, AAPL, PCLN, BIDU, GOOG, ISRG, NTAP Potential Breakout Setups: BDK, BAC, INTC, WHR, DOW, FSLR, BUCY, HANS, FLS, APOL, AKAM, AMX, CAT, AGU, NWSA, STT, AXP Pulling Back: AMZN Potential C Patterns: C Pattern Breakout: ADSK Lower Close in Support Bounce: LVS, WYNN, DE, FWLT, HOLX, ZION, ADBE, FAST, SPG Flag Setups and Bounces in Progress: WLT, XLNX, HOLX, FLIR, DD, MA, V, JCI, MRVL, TXN Potential Down Trend Setups: X, JEC, RIMM, AGCO, MON, MYGN, ORCL AAPL +0.34 QCOM -0.38 GOOG +7.79 BIDU -13.58 NDX 100 stocks stronger than the NDX: LRCX, PPDI, AMAT, LLTC, STX, ADSK, MRVL, CTXS, ORLY, FSLR, XLNX, GRMN, BRCM WCRX, MXIM, ESRX, ALTR, MICC, SHLD, GOOG, EBAY, JNPR, EXPE, CTSH, NIHD, EXPD, INTC, CHKP, ROST, INTU, ERTS, KLAC and MCHP. Stocks to Watch on Tuesday Leading Stocks Holding Above 30 DMA CTSH, AAPL, PETS, PCLN, TDG, PCP, CLB, ESRX, NIHD, K, FLS, GXDX, BAP, GME, WRC, BIDU, HDB, JW.A, ATW, EZPW, JOYG, TRLG, GPRO, PPD, DECK, VPRT, AMZN, GMCR, ACN, SLGN, FSLR, NFLX, HANS, DV, ESI, STRA, MCD, CPLA, HLF, SWN, AFAM, AMED, CAM, GES, ICE, UYG, AMX, APEI, BLUD, EBAY, FAS, MUR, SPWRA, CHL, BYI, WAB, URE, ALGT, DLTR, MHS, WCG, GR, SNA, SNHY, USD Moving Above 30 DMA = 1 BKC Moving Below 30 DMA = 2 NTLS, PWRD Staying Below 30 DMA PPD, FAZ, BDX, BIIB, GILD, JCOM, JOSB, RCI, VAR, FUQI, JEC, X, CBST, RBN, RIMM, DLB, PSYS, MYGN, PWR, SYNA, MOS, ORCL, WMT, MON Intermediate Term Market Trend: Up Short Term Market Trend: Up